Ark Invest CEO Cathie Wood spoke at Hong Kong's Web3 Carnival about the great strides the special administrative region has made in cryptocurrencies and Web3.
During his participation, Wood spoke about how quickly Hong Kong regulators are moving to regulate the cryptocurrency industry and establish a comprehensive and clear legal framework for this new class of digital assets.
The CEO of Ark Invest, one of the major asset managers that have launched a Bitcoin cash exchange-traded fund (ETF) in the United States, also highlighted the initiatives that Hong Kong has been pushing in relation to cryptocurrencies and Web3. Wood emphasized the Great work by the regulatory authorities of the region, such as the Securities and Futures Commission (SFC), to provide a very complete management structure and provide Regulatory transparency for the crypto industryHe noted that these two aspects are essential to ensure the development of the blockchain industry and technology and to guarantee safe participation by users and investors.
Hong Kong leads the way in regulating the crypto and Web3 industry
Hong Kong is outpacing the United States in relation to cryptocurrencies, Wood said. He was speaking about the progress that the Chinese special administrative region has made in fostering both the development of innovation and technology, as well as investment by entrepreneurs and mutual cooperation between the government and institutions. All of this, he said, demonstrates the international leadership of the region and consolidates its position as a Center for Innovation and Development financial and technological.
Recently, Bloomberg noted in a report that Hong Kong regulators appear to be open to the possibility of receiving applications for Bitcoin ETF listings that include the model of Refunds in kind, that is, in Bitcoin, which is a major step forward compared to the United States. Similarly, Chinese investment asset management companies Harvest Fund and Southern Fund have requested authorization from the Hong Kong securities regulator to launch a Bitcoin spot ETF through their subsidiaries in the administrative region.
“It is a very good learning experience for us, and that is what I really want to say, because a healthy and stable environment is essential for the development of the innovative technology industry, for investors and for consumer protection,” said Wood.
Compared to Hong Kong, US regulators are still showing resistance to the cryptocurrency industry, considering digital assets as a potential risk to the financial system. On this, Ark Invest CEO considers that the country could take advantage of Hong Kong's example to advance cryptocurrencies, in order to address regulatory uncertainty and mitigate the flight of specialized talent, who leave the country in search of better opportunities in more crypto-friendly jurisdictions.
“If regulators treat professionals better and give them more clarity and freedom, we will see better results,” Wood said.
Investment institutions will move to Bitcoin
In addition to expressing his views on the regulatory status of cryptocurrencies and Web3 in Hong Kong and the United States, Wood also discussed his predictions for the future price of Bitcoin, highlighting that the market-leading cryptocurrency has huge potential to appreciate significantly now that the US SEC has approved the listing of spot ETFs.
For 2030, Bitcoin could reach a value of $1,5 million for BTC, Wood said.
These predictions are based on the capital allocation that investment institutions have already started to make in Bitcoin and that will grow in the future. Wood, who is an investment expert and has an extensive background as director of Ark Invest, foresees that investment institutions will begin to move massively towards the market-leading cryptocurrency, which will further legitimize Bitcoin and raise its attractiveness as an investment asset.
Previously, Wood noted that the price of Bitcoin could reach $600.000 per BTC by 2030. However, the approval of spot ETFs for the cryptocurrency in the US market is a major catalyst for accelerating the institutionalization of Bitcoin. According to estimates, investment institutions could allocate up to 5% of assets under management to Bitcoin, which will undoubtedly boost its price in the market.
Continue reading: BlackRock adds new APs to its Bitcoin spot ETF: Goldman Sachs among them
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