Ark Invest CEO Cathie Wood expressed optimism regarding the Securities and Exchange Commission’s stance on Bitcoin exchange-traded funds [ETFs]. Wood praised the regulator’s evolving approach, emphasizing that the regulator’s previous pattern of outright denials followed by active discussions signifies a positive shift. According to Wood, this reflects the SEC’s deepened understanding and knowledge of the relevant issues.
In a recent communication, the SEC set December 29 as a deadline for the submission of ETF applications. Wood interpreted this as the SEC imposing a deadline on itself, signaling a proactive approach to managing its workload effectively. She explained that the message was clear: if entities are not ready by the specified date, or around January 10, they should refrain from submitting further applications.
During discussions about feedback from the SEC, Wood highlighted the pivotal concerns surrounding ETF applications. These include determining the tax impact of transactions and addressing whether transactions will primarily involve cash. Additionally, there are apprehensions about banks becoming involved in cryptocurrency, raising important questions that need resolution.
Wood expressed hope that SEC approval would incentivize cautious institutional investors, potentially triggering a substantial boost in Bitcoin prices. Even a modest 0.1% movement, according to Wood, could have a significant impact. Ark Invest has submitted a total of five ETF proposals, covering Bitcoin and Ethereum futures.
Bitcoin ETF Would Gain Traction If…
Wood acknowledged the success of 21Shares, a major ETP crypto provider in Europe with around $2 billion in assets. Ark Invest aspires to replicate this success in the U.S. Wood emphasized that a spot Bitcoin ETF would gain traction once institutions and other investors establish a foothold in the cryptocurrency space. She noted, “They will want ways to diversify, and we wanted to be ready to actively manage diversification strategies.”
Looking ahead to 2024, Wood predicts a continuation of the positive trend observed in 2023, during which Bitcoin achieved a record 50% gain despite challenges such as the regional bank crisis, exemplified by the bankruptcy of Celsius. Wood remains optimistic about the future of Bitcoin and the cryptocurrency market, envisioning continued growth and resilience.
In summary, Wood’s forward-looking perspective anticipates further gains and development in the crypto market in the coming years.