Cathie Wood, the founder of Ark Invest, is making a bold claim in the midst of speculation regarding the potential approval of a spot Bitcoin ETF. While many fear that this anticipated approval could lead to a major selloff, Wood believes otherwise.
Over the last three months, Bitcoin has surged by approximately 70%, largely due to the optimism surrounding the approval of a spot ETF. The Securities and Exchange Commission (SEC) is expected to make a decision on this matter imminently.
During an appearance on CNBC’s “Fast Money Halftime Report,” Wood noted the change in behavior from the SEC, suggesting an impending approval. She highlighted the common belief that the actual approval could trigger a selloff, but she offered a differing perspective.
Wood addressed the prevalent concern of a “sell on the news” scenario, expressing her belief that the narrative of an impending selloff may have already been priced in, potentially thwarting a significant post-approval dip.
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As for where Bitcoin is headed, Wood confidently predicted a continuation of its upward trajectory post-approval. She foresees a surge in inflows with more widespread access to the digital currency, particularly from both retail investors and institutions.
Wood emphasized the SEC approval as a potential “green light” for institutions, anticipating substantial capital allocation into Bitcoin due to its burgeoning status as a scarce asset.
She drew parallels between Bitcoin and gold, underlining the former’s current market cap of about $900 billion in comparison to gold’s $12 trillion market. Wood suggested that the approval of the spot ETF could lead to substitution effects between the two assets.
Additionally, Wood highlighted the supply-demand dynamics of Bitcoin. With demand on the rise and supply capped at around 19 million coins (of which 15 million are held by long-term investors), she accentuated the scarcity factor intrinsic to the cryptocurrency.
According to Wood, if Bitcoin were to attain a market cap on par with gold, its value would exceed $600,000 per coin, based on data from Benzinga Pro.
In terms of current price action, Bitcoin displayed an approximately 6% increase over a 24-hour period, reaching $46,793, as reported by Benzinga Pro.
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Photo: Benzinga YouTube and an artificial intelligence-generated image using MidJourney