More Can't Wait, Cathie Wood Believes Bitcoin ETF Will Be Approved By SEC This Week
JAKARTA - CEO of Ark Investment Management, Cathie Wood, is optimistic that the Exchange-Trad Fund (ETF) Spot proposal proposed with 21shares will get approval from the United States Securities and Exchange Commission (SEC). This was revealed in an interview with CNBC on Monday, January 8, 2024.
The Bitcoin Spot ETF is an investment product that follows bitcoin prices directly, without involving derivative assets or futures contracts. If approved, this ETF will be the first in the US and is expected to increase the interest of institutional investors in cryptocurrencies.
Wood said the SEC had shown a more open and cooperative attitude towards Spot's Bitcoin ETF proposal, by asking relevant and technical questions. "I think they've asked all the questions that need to be answered, and I think most of us may have been part of that process," he said.
He also dismissed suggestions that Spot's Bitcoin ETF approval would be a "selling news" event that would lower bitcoin prices. According to him, many people have anticipated this and adjusted their position. "Who knows, it's very short-term," he said.
SEE ALSO:
Wood insists that with a five-year investment period, he believes the flow into bitcoin, especially from institutions, will be huge and push bitcoin prices to higher. He said that bitcoin is digital gold that has the potential to replace part of the $12 trillion gold market.
"I think bitcoin may reach 800 billion US dollars (IDR 12,449.6 trillion) now. So we think there are some substitutions going on," he said.
Wood added that if the allocation of funds from institutions to bitcoin is only 2.5% to 5%, it is enough to make bitcoin rise. "You will see 0.5% and then 1%. You will see a step that could be the biggest reason for bitcoin to rise," he said.
Wood concluded that bitcoin is a rare asset, with a limited number of only 21 million units. Currently, there are about 19.5 million bitcoins in circulation, and about 15 million of them are in long-term holdings. "They haven't moved their bitcoins for more than 155 days. So this is indeed... a rare asset," said Cathie Wood.