Ark Investment Management CEO, Cathie Wood, said she doubts that regulators in the U.S. will approve bitcoin exchange-traded fund (ETF) before Bitcoin’s (BTC) market cap hits $2 trillion. According to CoinMarketCap, the current market capitalization of the leading cryptocurrency is hovering around $600 billion.
At the ETF Trends Big Ideas event, the CEO of Ark Investment Management stated:
“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”
She remains optimistic about cryptocurrencies under the leadership of Gary Gensler being nominated to lead the SEC by Joe Biden. Gensler is a former CFTC commissioner and MIT digital currency professor. Wood called Gensler very pro bitcoin.
As of yet, Gensler is the most crypto knowledgeable SEC chair, having described himself as a little bit center minimalist on Bitcoin while a center maximalist on blockchain technologies and smart contracts.
Wood also predicted Bitcoin’s price if institutional and corporate adoption trends continue. Wood said that if every S&P 500 company invested 1% of their assets in bitcoin the price would increase by $40,000. One of her presentation slide at the ETF Trends Big Ideas event noted:
In a recent interview with Yahoo Finance, Cathie Wood even remarked that more companies will load their balance sheets up with bitcoin, saying:
“I believe there is no better hedge against inflation than Bitcoin. As we know, gold has been moving, although now it’s lagging Bitcoin fairly dramatically so there’s probably some share shift but I do believe that both of them will do well over time. I think we’re going to hear about more companies putting this hedge on their balance sheet as well, particularly tech companies who understand the technology and are comfortable with it.“