According to Cathie Wood, Ark Invest, Bitcoin’s long-term outlook is brightening.
The CEO and chief investment officer of the active management company, explosive, told CNBC this week that the catalysts of cryptocurrency are adding up to unprecedented highs.
“I think the likelihood of an ETF has increased,” Wood told CNBC’s “ETF Edge” in a lengthy interview Wednesday.
With Gary Gensler – a longtime fundraiser who taught a digital currency class at the Massachusetts Institute of Technology – being nominated to head the Securities and Exchange Commission, the watchdog could warm up to encryption during the Biden administration , said Wood.
“I think we have people involved now who really understand the space and I think the probability has increased” for a US bitcoin ETF.
Purpose Investments gained approval for the first physically supported bitcoin ETF in Canada this week. The fund began trading on Thursday.
Now that American corporations, including Tesla, Ark Invest’s favorite, are adding bitcoin to their balance sheets, its profit potential has grown exponentially, Wood said.
“We expected the institutional interest to grow this year and it certainly succeeded, but the way it was taken over surprised us,” she said. “I don’t think I ever thought there would be a large-scale replacement of bitcoin for cash in corporate balance sheets, so we think it’s very interesting.”
Tesla unveiled a $ 1.5 billion bet on bitcoin through SEC deposits earlier this month. Several other major players in the US market, including BlackRock, Mastercard and Square, have also announced moves into space.
“If all corporations in the United States put … 10% of their cash in bitcoin, that alone would add $ 200,000 to the price of bitcoin,” Wood said. “It simply came to our notice then. We do not believe this will happen very soon. We’re talking about maybe his equivalent [a] $ 900 billion market capitalization. “
Bitcoin’s market value fell $ 1 trillion on Friday, according to digital currency news site Coindesk.
“This needs to mature a bit before large-scale adoption, but we’re very confident that companies like Square and Tesla have chosen to allocate,” Wood said Wednesday.
Follow the CEO of Som Seif, the founder of the Purpose Investments fund ETF Edge interview about his bitcoin ETF, which has just been launched Here.