FameEX Hot Topics | Ark Invest Chief Foresees 'Significant' Institutional Investment in Spot Bitcoin ETFs, Predicting a Sharp Rise in BTC Value

Cathie Wood, the CEO of Ark Invest, has a bullish outlook on the impact of spot bitcoin exchange-traded funds (ETFs) on bitcoin's value. She anticipates a significant rise in bitcoin prices if the U.S. Securities and Exchange Commission (SEC) approves these ETFs, a decision expected by Wednesday. Wood believes that SEC approval would serve as a strong endorsement for institutional investors, who are showing increased interest as the SEC appears to be facilitating this new investment avenue.

In a CNBC interview, Wood discussed the potential of spot bitcoin ETF approvals by the SEC. Ark Investment Management, in partnership with 21 shares, awaits a decision on their joint spot bitcoin ETF proposal, which is among the first to be considered this year. Wood addressed the growing openness of institutional investors to bitcoin, linking it to the anticipated approval of spot bitcoin ETFs. She asserts that such approval would be a clear signal for institutions, which have been engaging more with the idea now that the SEC is seemingly creating a path for these investment tools.

When asked about the likelihood of her firm’s spot bitcoin ETF proposal gaining SEC approval, Wood expressed optimism. She pointed to the SEC's shift from consistent denials to posing comprehensive and technical queries, suggesting they have gathered necessary information and are ready to proceed. Wood also countered the speculation that the approval of spot bitcoin ETFs might result in a 'sell the news' situation. She argued that the market might have already adjusted to this expectation, potentially minimizing immediate market reactions.

Looking ahead, Wood emphasized Ark Invest's long-term investment strategy. She anticipates substantial institutional investments flowing into bitcoin, a trend she believes will significantly increase its value. Given bitcoin's limited supply, Wood suggests that even a small institutional allocation could have a large impact on its price.

Wood's perspective reflects a strong belief in the transformative potential of spot bitcoin ETFs. She sees these financial instruments not just as a new investment option, but as a catalyst for broader institutional adoption and validation of bitcoin. This view is underpinned by her confidence in the SEC's evolving approach to bitcoin ETFs and the growing institutional interest in the cryptocurrency market.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.