Cathie Wood, CEO of Ark Investment Management, said she doubts U.S. regulators would green-light a Bitcoin exchange-traded fund before the market value of the original cryptocurrency exceeds $2 trillion.
“The flood of demand has to be satisfied so it’s going to have to get well over a trillion dollars – $2 trillion, I think, before the [U.S Securities and Exchange Commission] will feel comfortable about” a bitcoin ETF, Wood said at the ETF Trends Big Ideas case on Tuesday.
At press time on Wednesday January 27, Bitcoin’s market capitalization hovered a tick below $600 billion.
According to coindesk.com, under Gary Gensler, the former CFTC commissioner and MIT digital currency professor who was nominated by President Joe Biden to head the SEC, Wood was optimistic on bitcoin’s prospects. Wood named Gensler “very pro bitcoin” and praised the leadership of the SEC’s crypto savvy.
Gensler, who, if confirmed, will certainly become the most crypto-knowledgeable SEC chair, has nonetheless identified himself as “a little bit center minimalist on Bitcoin.” He is, however, more of a “center maximalist” on blockchain technology and smart contracts.
Any ambitious projections regarding the price potential of bitcoin should institutional and corporate adoption trends proceed were also included in Wood’s Tuesday presentation. Citing the bitcoin treasury policy of MicroStrategy, Wood said that if any S&P 500 firm spent 1% of their assets in bitcoin, the price would rise by $40,000.