Bitcoin’s long-term outlook shines bright, according to Ark Invest’s Cathie Wood.
The CEO and chief investment officer of the popular executive management company told CNBC this week that the cryptocurrency’s catalysts are picking up as they move to new unprecedented heights.
“I think the probability of an ETF has gone up,” Wood told CNBC’s “ETF Edge” in an extensive interview Wednesday.
With Gary Gensler – a long-time financier who taught a digital money class at the Massachusetts Institute of Technology – named to lead the Securities and Exchange Commission, the watchdog could warm to crypto during Biden’s administration, he said. Wood.
“I think we now have individuals who really understand the place and I think the likelihood has gone up” for a bitcoin ETF based in the US.
Purpose Investments secured approval for Canada’s first corporately backed bitcoin ETF this week. The fund began trading on Thursday.
Now that U.S. corporations are introducing Ark Invest-preferred Tesla adding bitcoin to their balance sheets, its profitability has grown exponentially, Wood said.
“We were expecting institutional interest to pick up this year and of course it is, but the way it’s built has surprised us,” she said. “I don’t think it was we never thought bitcoin would be widely based for money on corporate balance sheets, so that’s very interesting for us. “
Tesla unveiled a $ 1.5 billion bet on bitcoin through SEC filings earlier this month. Several other major players in the U.S. market including BlackRock, Mastercard and Square have announced that they are moving into the space.
“If every corporate body in the United States invested … 10% of their money into bitcoin, that alone would add $ 200,000 to the price of bitcoin,” Wood said. “Now, it’s clear we don’t believe this will happen very soon. We’re talking about maybe the same [a] $ 900 billion market cap. “
Bitcoin’s market value broke $ 1 trillion on Friday, according to digital currency news site Coindesk.
“This has to come to an end a little before widespread adoption can take place, but we are very confident that companies like Square and Tesla have chosen to accommodate it,” Wood said Wednesday.
Look at Purpose Investments, CEO of Som Seif “ETF Edge” an interview about his just-launched bitcoin ETF here.