Ark Invest CEO Cathie Wood believes the U.S. Securities and Exchange Commission (SEC) will approve a spot bitcoin exchange-traded fund (ETF) by January 2024.<\p>
Wood cites the SEC’s deeper understanding of bitcoin and the cryptocurrency space as a reason for her optimism.<\p>
Though Wood anticipates a short-term impact on bitcoin’s price following a spot ETF approval, she believes it will significantly increase institutional interest over the long run.<\p>
CEO Wood Optimistic About Spot Bitcoin ETF
In a recent interview with CNBC, Ark Invest CEO Cathie Wood said she expects the U.S. SEC to approve a spot bitcoin ETF by January 2024. Currently, the SEC has only approved bitcoin futures ETFs.
Wood is involved with 21Shares in developing both Ethereum and Bitcoin futures ETF products. However, she believes a spot Bitcoin ETF that invests directly in the cryptocurrency would be “highly desirable” for institutional investors.
Potential Impact on Bitcoin Price
Wood anticipates a short-term impact on bitcoin’s price following the approval of a spot Bitcoin ETF due to an initial frenzy of institutional investment. However, she views the longer-term implications as more significant as institutions invest further.
Ark Invest’s Focus on Cryptocurrency
Ark Invest is focused on actively managing diversification strategies surrounding cryptocurrencies. Despite the current crisis among regional banks, Wood noted that bitcoin saw a 50% gain in 2023, which she considers part of an ongoing positive trend.
Bitcoin as a Hedge and Mainstream Investment (Watch)
Wood highlights features like no counterparty risk, decentralization, and the transparency of on-chain activities as advantageous attributes of cryptocurrencies. She views bitcoin as a hedge against both inflation and deflation, predicting it will become a mainstream investment similar to gold.
Potential Adoption by Emerging Economies
Citing El Salvador’s adoption of bitcoin as legal tender, Wood suggests that other emerging economies like Argentina may follow suit.