Catherine Wood also praised the newly nominated head of SEC Gary Gensler is “very pro Bitcoin”.
The CEO of Ark Investment Management Cathie Wood has said that financial regulators in the United States will not assent to a Bitcoin exchange-traded fund unless the overall market capitalization of the crypto industry hits $2 trillion. This was made known in an ETF Trends Big Ideas event.According to Wood, she doubts if the US Securities and Exchange Commission (SEC) would feel comfortable with the leading crypto asset unless the “flood of demand” for Bitcoin is satisfied. She noted that the crypto industry currently has a market cap of $1 trillion, this has to double before the authorities can accept a Bitcoin ETF. Currently, Bitcoin has a market cap of over $600 million which is bigger than the market cap of financial institutions like MasterCard and Visa.During her presentation, she predicted that Bitcoin price could continue to rise especially if the current institutional adoption of the asset should continue. The Ark CEO cited MicroStrategy’s Bitcoin-first treasury policy and said if other top companies were to put only 1% of their assets in Bitcoin, then the value of the asset could rise by up to $40,000. Microstrategy’s CEO Michael Saylor has remained bullish about the crypto industry and has maintained his insistence on allocating his company’s assets into the crypto coin.She furthered this view by saying if these institutions were to allocate between 2.5% and 6.5% of their assets to BTC, then we can expect the asset value to be as high as $500,000.Wood Believes that New SEC Chairman Is Good for Bitcoin and Crypto IndustryWood also went on to praise the head of SEC Gary Gensler newly nominated by President Biden. She said that the digital currency professor is “very pro Bitcoin” which is very good news for the crypto industry generally.Gensler who made his name during his stint as the Chairman of the Commodity Futures Trading Commission (CFTC) previously is well renowned for his knowledge and positive disposition towards decentralization and digitization of finance. He labels himself to be “a little bit center minimalist on Bitcoin.” While he is more pro blockchain technologies and smart contracts.In an earlier interview with Yahoo Finance, the Ark CEO, has said that many large companies have been asking for her opinion about the possibility of investing in Bitcoin as an hedge against inflation. She added that we could see the entrance of more tech companies who are more comfortable with the technology putting their funds into the crypto industry.Since the beginning of last year, we have witnessed the entrance of major tech companies and other top financial institutions entering into the crypto industry. Analysts have tied the entrance of these new institutional investors to the rise in value of the crypto asset.
