Cathie Wood, CEO of Ark Investment Management, said she doubts US regulators will give the green light to an exchange-traded bitcoin fund before the market cap of the original cryptocurrency hits $ 2 trillion.
“The tide of demand needs to be met so that it goes well over a trillion dollars – 2 trillion dollars, I think, before that [U.S Securities and Exchange Commission] I’ll be comfortable with a Bitcoin ETF, ”Wood said at the ETF Trends Big Ideas event on Tuesday.
Bitcoin’s market cap was below $ 600 billion at press time on Tuesday.
Under Gary Gensler, former CFTC commissioner and MIT professor of digital currencies who was named head of the SEC by President Joe Biden, Wood was optimistic about Bitcoin’s prospects. Wood called Gensler “very much in favor of Bitcoin” and praised the SEC’s crypto-savvy leadership.
Gensler, who would undoubtedly become the most crypto-knowledgeable SEC chair if confirmed, has nonetheless described himself as “a bit minimalist for Bitcoin”. However, he is more of a “center maximalist” when it comes to blockchain technologies and smart contracts.
Tuesday’s presentation in Wood also included some bold predictions of Bitcoin’s price potential if institutional and corporate adoption trends continue. Citing MicroStrategy’s Bitcoin First Treasury Policy, Wood said the price would rise by $ 40,000 if each S&P 500 company invested 1% of its assets in Bitcoin.
“Institutional allocations between 2.5% and 6.5% could affect the Bitcoin price by $ 200,000 to $ 500,000,” said a slide deck.