Cathie Wood, the founder and CEO of ARK Investment Management, recently shared her insights on the future of cryptocurrency exchange-traded funds (ETFs). In an interview with The Wall Street Journal’s “Take On the Week” podcast, Wood predicted that the Securities and Exchange Commission (SEC) would likely approve spot ETFs holding only Bitcoin (BTC) and Ethereum (ETH).
Wood stated, “We’d be surprised to see anything but bitcoin and ether being approved by the SEC.” This statement comes as ARK has partnered with crypto asset manager 21Shares to launch one of the first U.S.-based ETFs holding ETH, the second-largest cryptocurrency and native token of the Ethereum blockchain. The partnership follows the approval of their spot Bitcoin ETF, one of the first 10 ETFs to be green-lit by regulators in the United States.
However, despite SEC Chair Gary Gensler referring to BTC as a commodity, the SEC has yet to provide a clear stance on the classification of ETH. This uncertainty has not stopped asset management heavyweight Franklin Templeton from filing for a spot in Ethereum ETFs.
Wood’s prediction and the increasing interest in cryptocurrency ETFs highlight the growing acceptance and adoption of digital assets in traditional finance. As more investors seek exposure to cryptocurrencies, ETFs offer a regulated and convenient way to invest in these assets.
Wood’s comments on the shift from gold to Bitcoin further emphasize the changing investment landscape. She noted that Bitcoin has been rising relative to gold and that there is now a substitution into Bitcoin. This trend is expected to continue as there are now less friction-filled ways to access Bitcoin.
Regarding the recent launch of a spot Bitcoin ETF, Wood acknowledged the immediate price correction but highlighted the long-term holding patterns among Bitcoin owners. She pointed out that a significant portion of the circulating Bitcoin, around 15 million out of 19.5 million, hasn’t moved in 155 days. This suggests a stable, long-term view among cryptocurrency investors.
At the time of writing, Bitcoin was trading at $49,419, representing a 1.12% decline over the past 24 hours. Despite short-term price fluctuations, the demand for Bitcoin and other cryptocurrencies remains strong, with increasing institutional interest and the potential approval of more cryptocurrency ETFs.
In conclusion, Cathie Wood’s insights on the future of cryptocurrency ETFs provide valuable perspectives on the evolving landscape of digital assets. With the expectation of Bitcoin and Ethereum being approved by the SEC for ETFs and the growing interest from institutional investors, the acceptance and adoption of cryptocurrencies continue to gain momentum in traditional finance.
