For the CEO of Ark Investment Management, Cathie Wood, Bitcoin may see the arrival of an ETF after it exceeds 2B dollars in market capitalization.
Cathi WoodCEO Ark Investment Management, the global asset management company, stated that the cryptocurrency market leader, Bitcoin (BTC), you may see the arrival of an ETF, or exchange-traded fund, approved by the United States Securities and Exchange Commission (SEC), if its market capitalization reaches over $2 trillion. The investment expert believes that regulators will not approve the listing of this product until the Bitcoin market grows and consolidates above this value.
For Wood, it is necessary that the capitalization of Bitcoin, which is around $560 billion at the time of this edition, quadruples to give a feeling of “comfort” to the SEC, and that it can authorize the creation of an ETF to the cryptocurrency.
The company that recently filed a new application with the SEC for the establishment of this product was Vaneck Associates Corp, who is trying, for the third time, to get approval from the regulator. Wood believes, like other entities, that the arrival of a new administration at the SEC may change the entity's general vision towards cryptocurrencies, and towards products based on them.
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A ray of hope for the crypto community
Although Jay Clayton's position as president of the SEC was not the most favorable for the crypto industry, the arrival of the new president, Gary Gensler, will completely change the entity's vision towards digital currencies. The reason? Gensler, in addition to being former director of the United States Commodity Futures Trading Commission (CFTC), also serves as a professor of the chairs of digital currencies and technology blockchain at the Massachusetts Institute of Technology (MIT).
Gensler's closeness to cryptocurrencies, blockchain and digital assets rekindles hope in the crypto community; since Gensler's knowledge, understanding and positive disposition towards digitalization and new technologies can favor the development of this industry in the future. The CEO of Ark Investment Management considers Gensler a “very pro-crypto” person, whose arrival at the SEC is very good and favorable for the Bitcoin and cryptocurrency industry.
Positive projections on the price of Bitcoin
In addition to maintaining a favorable attitude about the future of the crypto industry in Gensler's hands, Wood also highlighted the possibility of Bitcoin reaching the $40.000 USD level again, and even surpassing a unit value of $200.000 USD and $500.000 USD. The expert based her projections on institutional interest, stating that the investment of between 1% and 6% of the capital of each S&P 500 company, in a similar way to what MicroStrategy and Square have done, would raise the price of Bitcoin between the 40.000 $ USD and the 500.000 $ USD per unit.
For her part, BBVA's Client Solutions strategy manager, Alicia Pertusa, said during a interview that the adoption of Bitcoin is being driven mainly by the arrival of standards and regulations that provide confidence to the industry, in addition to the technological maturity that surrounds this cryptocurrency, which has a team of experts and developers unique in the world that works out of pure motivation.
Continue reading: SEC Considers Opening Cryptocurrency-Based ETF for Tokenized Stocks
