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Solana’s 18-Month Price High & The Cathie Wood Effect

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Solana often hailed as the “Ethereum Killer”, has experienced a remarkable surge of over 350% in the past year, marking an 18-month high in its price. The driving forces behind this impressive growth are multifaceted, with the recent accolades from Cathie Wood, the CEO of Ark Invest, serving as the latest catalyst. Wood, in a November 1 CNBC interview, commended Solana for its efficiency and cost-effectiveness, positioning it as a crucial player in blockchain infrastructure. Notably, she underscored Solana’s speed and efficiency, surpassing even Ethereum in these critical aspects.

Drawing parallels with the historical comparison between Bitcoin and Ethereum, Wood highlighted that, in its time, Ethereum was faster and cheaper than Bitcoin. However, she pointed out that SOL has managed to outpace Ethereum in terms of both speed and cost-effectiveness. In Wood’s perspective, Ethereum and Solana are pivotal components of the blockchain ecosystem, functioning as infrastructure layers capable of supporting a broader array of real-world applications compared to Bitcoin.

In tandem with a generally positive trend in the cryptocurrency market, SOL’s gains have outstripped those of other major cryptocurrencies, boasting an impressive surge of over 197% in the past month alone. Beyond its price momentum, the leading altcoin’s influence in the decentralized finance [DeFi] sector has garnered significant attention.

Solana’s Smart Contracts Hit YTD High

According to the CEO of Asymmetric, Joe McCann, the number of SOL DeFi users actively engaging with 10 or more smart contracts [Solana programs] daily has reached a year-to-date high. SOL’s user engagement surpasses Ethereum by 11.5 times, Optimism by 6.88 times, and both Arbitrum and Avalanche by 16.4 times. Most notably, it outshines Polygon by a staggering 23 times.

The SOL decentralized exchange [DEX] volume to total value locked [TVL] ratio over the last seven days is an impressive 13.6 times, highlighting the platform’s notable capital efficiency. As per CoinmarketCap data, Solana’s current value stands at just over $65.6, reflecting a substantial increase of nearly 190% in the past month. This surge underscores the growing confidence and interest in the Solana network, positioning it as a formidable player in the ever-evolving cryptocurrency landscape.

Ark Invest Forge New Frontier With 5 New ETFs: Details

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Cathie Wood’s Ark Invest has joined forces with 21Shares, to introduce five new Exchange-Traded Fund [ETF] products. This collaboration is set to usher in a wave of investment opportunities, including Bitcoin and Ethereum futures contracts, as well as products focusing on stocks of companies deeply entrenched in the blockchain industry. The prospective ETFs, pending approval, are slated to be launched on the Chicago Board Options Exchange [Cboe], as outlined in the prospectuses released by the companies.

Among the innovative products on the horizon is an ETF that will not only delve into crypto futures contracts but also invest in a diverse range of assets, including “public equities of companies engaged in the blockchain industry,” according to details available on 21Shares’ official website. Ark Invest, a prominent player in the asset management sphere, has underscored that these new funds will provide investors with a comprehensive array of options for integrating exposure to digital assets into their investment portfolios.

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Ark Invest Forge New Frontier With 5 New ETFs: Details 2

Leveraging on-chain signals and their extensive experience in the crypto domain, the suite of products aims to achieve long-term capital appreciation through strategic investments in Bitcoin and Ethereum futures contracts, coupled with the application of cutting-edge blockchain technologies, according to statements released by 21Shares.

Crucially, Ark Invest has emphasized that these funds will not provide a direct avenue for investors to venture into the realm of digital assets. The firm clarified that neither the funds nor the underlying ETF will directly invest in Bitcoin or other digital assets, nor maintain direct exposure to spot Bitcoin. Ark Invest has advised potential investors seeking direct exposure to the price of Bitcoin to explore alternative investment options outside of these funds.

Ark Invest’s Financial Maneuvers

Notably, Ark Invest has been making significant moves in the financial market recently. The company recently made a substantial investment in Robinhood [HOOD], a prominent U.S.-based financial services company. This strategic acquisition followed Robinhood’s announcement of its plans to expand its operations in Europe. Additionally, Ark Invest has streamlined its portfolio by divesting substantial holdings, selling over 42,000 shares of Coinbase and 100,000 shares of Grayscale Bitcoin Trust.

These divestitures amounted to nearly $6 million, marking a strategic reshuffling of the company’s investments. As Ark Invest continues to navigate the ever-evolving landscape of digital assets and blockchain technology, its partnership with 21Shares and the introduction of these innovative ETF products signal a forward-thinking approach to investment opportunities in the digital age.

Robinhood Soars on ARK Invest’s $9.54 Million Buy

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Cathie Wood’s ARK Invest purchased a large chunk of shares in U.S.-based financial services company Robinhood (HOOD), a day after the popular trading platform laid out plans to expand in Europe.

ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF) bought a combined 1,141,046 shares of the cry[to trading service provider. The total purchase had a value of $9.54 million based on Wednesday’s close of $8.36.

The trading firm on Tuesday, in its third-quarter earnings statement said,

“With an experienced team in place, we will soon launch brokerage operations in the U.K. As another step in global expansion, we are also planning to launch crypto trading in the EU following our U.K. launch.”

The exchange’s expansion into Europe comes as the company looks to capitalize on the growing popularity of online trading. The platform has been particularly popular among young investors, who have been drawn to its commission-free trading and easy-to-use interface.

ARK Invest’s purchase of the exchange shares is a sign of confidence in the company’s future. The firm is known for its investment in disruptive technology companies, and Robinhood is seen as a leader in the online trading space. ARK Invest said in a statement,

“We believe that Robinhood is well-positioned to capitalize on the growing trend of online trading. The company has a strong brand, a loyal customer base, and a talented team of executives.”

Robinhood’s Expansion Plans

Robinhood’s expansion into Europe is a significant step for the company. The European market is home to over 750 million people, and it is a major market for online trading.

The exchange plans to launch its brokerage operations in the U.K. first, followed by other European countries. The company is also planning to launch crypto trading in the EU.

Robinhood’s stock price has been volatile in recent months. The stock is down over 70% from its all-time high, but it has rebounded in recent weeks.

Analysts believe that Robinhood’s stock price could continue to rally in the months ahead. The company’s expansion into Europe could be a major catalyst for the stock.

Overall, ARK Invest’s purchase of Robinhood shares is a sign of confidence in the company’s future. Robinhood’s expansion into Europe is a significant step for the company, and it could be a major catalyst for the stock price.

Ark Invest’s Market Maneuvers: Offloads $6M Coinbase & GBTC Shares

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Ark Invest, the global asset manager, has recently divested significant holdings, unloading more than 42,000 shares of Coinbase and 100,000 shares of Grayscale Bitcoin Trust [GBTC], according to an update from the firm’s trading desk. Out of the 42,613 shares of Coinbase, Ark’s Next Generation Internet ETF [ARKW] sold 32,158 shares, and Ark Fintech Innovation ETF offloaded 10,455 shares. Additionally, ARKW also sold 100,739 GBTC shares. Considering the latest closing prices of Coinbase at $77.21 and GBTC at $24.71, these sales amounted to nearly $6 million.

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Ark Invest's Market Maneuvers: Offloads $6M Coinbase & GBTC Shares 4

This liquidation coincides with a market-wide rally fueled by Bitcoin, which recently surged past the $35,000 mark, reaching a multi-month high. Bitcoin’s bullish momentum, surging by an impressive 23% over the past seven days, was sparked by anticipation surrounding the potential approval of spot Bitcoin exchange-traded funds [ETFs]. Notably, BlackRock’s highly anticipated spot Bitcoin ETF, the iShares Bitcoin Trust, made an appearance on a list maintained by the Depository Trust and Clearing Corporation, hinting at imminent approval.

In the competitive landscape of spot Bitcoin ETFs, Ark Invest, led by Cathie Wood, has emerged as a frontrunner. In June 2021, Ark Invest submitted its first application for the Ark21Shares ETF in collaboration with Swiss ETF provider 21Shares AG. If approved, this BTC ETF will be listed on Cboe’s BZX Exchange under the symbol ARKB.

Ark Invest Set To Chart New Course

Despite Ark Invest’s proactive approach, the U.S. Securities and Exchange Commission [SEC] has extended its evaluation of the Ark 21Shares Bitcoin exchange-traded fund application. The SEC continues to assess applications from traditional financial giants like BlackRock and Fidelity Investments. However, recent court rulings in cases involving GBTC and Ripple/XRP against the US regulator have infused the market with a newfound sense of optimism.

Presently, Bitcoin is trading at around $34,660, reflecting a remarkable 22% increase over the last seven days, as per data derived from prominent price tracker site CoinMarketCap. As the cryptocurrency market continues to evolve, investors are closely monitoring these developments, anticipating potential shifts in market dynamics and the regulatory landscape that could influence future investment decisions.

Signals Hope For Bitcoin Spot ETFs: SEC’s Decision Not To Appeal Favors Grayscale

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The United States Securities and Exchange Commission (SEC) has reportedly chosen not to appeal a recent court decision that favored Grayscale Investments. This decision has implications for the cryptocurrency market, particularly with regard to spot Bitcoin exchange-traded fund (ETF) applications.

The ruling in question mandates that the SEC review Grayscale’s application to convert its Grayscale Bitcoin Trust into a spot Bitcoin ETF. The court’s decision came from the U.S. Court of Appeals for the District of Columbia Circuit.

According to Bloomberg analyst James Seyffart, the SEC’s decision not to appeal the ruling signifies a significant step in the approval process for cryptocurrency-based ETFs. Seyffart also stated that the SEC is expected to commence discussions with Grayscale in the coming week, and a new response from the SEC could be anticipated within the next two weeks.

Seyffart further predicts that there is a high likelihood of a spot Bitcoin ETF being approved, potentially by January 2024. He also mentioned that this decision could pave the way for other cryptocurrency-related ETFs.

Bitcoin Analyst Predictions & Insights

Other experts in the field, like Michaël van de Poppe and Crypto Rover, echoed the sentiment that the SEC’s choice not to appeal Grayscale’s win suggests a positive outlook for the cryptocurrency market. Poppe noted that the institutional framework for cryptocurrency investment is being designed, and Crypto Rover stated that the SEC might not have a basis to reject any Bitcoin Spot ETFs.

Several spot Bitcoin ETF applications are currently awaiting the SEC’s decision. The final deadline for the initial application from ARK Invest, led by Cathie Wood, is set for January 10, 2024. There is optimism in the industry that if the SEC approves one ETF, it may pave the way for the approval of others.

Overall, the decision by the SEC not to appeal the Grayscale case is seen as a positive signal for the cryptocurrency market, with analysts predicting the potential introduction of Bitcoin Spot ETFs in the near future, potentially even before January 2024. However, this development could mark a significant step in legitimizing cryptocurrency investments for institutional and retail investors alike.

Related Reading | Cardano’s Midnight Protocol: 1 Vision, 3 Freedoms, Endless Potential 

Bullish Bitcoin: Cathie Wood’s $1.5M Prediction While Kennedy’s Dollar Backing Plan

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In a recent Bloomberg interview, Cathie Wood, CEO of Ark Invest, expressed her unyielding optimism for Bitcoin’s future. Wood backed her bullish stance with her firm’s internal analysis, projecting a staggering $1,500,000 per coin as the bull case and a still impressive $625,000 in the best-case scenario.

According to her, the recent regional bank crisis in March has strengthened her belief in Bitcoin as a “hedge against counterparty risk.” Wood, known for her active management approach, addressed critics’ concerns that her investment strategy was losing steam. 

She asserted that Ark’s performance has outpaced the NASDAQ 100, even without the support of mega-cap tech stocks. The fund experienced a resurgence with positive inflows since July after facing significant outflows earlier in 2023. The success has been attributed to a “breakout” in her investment strategy, which has drawn technically oriented investors to Ark funds.

While remaining bullish on Bitcoin and cryptocurrencies in general, Wood has made some interesting reallocations within her portfolio. She expressed optimism for Coinbase, especially after a court ruling that favored Ripple over the SEC. 

However, this hasn’t stopped her from diversifying her investments into other areas like genomic companies and Teradyne, which she referred to as “laggards.” Wood’s forward-thinking and aggressive investment strategy has been gaining attention and sparking debates in the investment world.

Progressive Vision For The U.S. Dollar & Bitcoin

In the political arena, Democratic presidential candidate Robert F. Kennedy Jr. has proposed a novel plan to stabilize the American economy by backing the U.S. dollar with Bitcoin, alongside other hard assets like gold, silver, and platinum. 

Speaking at a Heal-the-Divide PAC event, Kennedy argued that this move would restore strength to the dollar, rein in inflation, and bring about financial stability, peace, and prosperity for the nation.

Kennedy clarified that his plan would be implemented gradually, beginning with a mere 1% backing of issued T-bills with hard assets like Bitcoin. Depending on its success, he would adjust the percentage of backing accordingly. 

Moreover, he pledged to exempt Bitcoin to U.S. dollar conversions from capital gains taxes, encouraging more investments and fostering growth within the U.S. business landscape.

The two divergent perspectives presented by Wood and Kennedy offer a glimpse into the world of finance and politics, where traditional markets and cryptocurrencies are increasingly intertwined. 

Both influential figures advocate unique approaches, generating notable attention and stirring discussions within their respective fields.

Related Reading | Ripple Lawsuit Update: Judge Appoints Magistrate Netburn For General Pretrial Proceedings

Bitcoin: Cathie Wood’s Ark Invest Might Be The First To Earn Approval For Spot ETF

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A surprise front-runner has stoked the flames of the Bitcoin ETF craze. Contrary to what many in the industry believe, Cathie Wood’s Ark Invest might be the first in line to receive clearance for a spot Bitcoin ETF rather than BlackRock.

According to analyst Yassine Elmandjra, BlackRock’s spot filing application has hogged the limelight for its inclusion of a ” unique” exchange surveillance-sharing arrangement that aims to stop market manipulation.

Nevertheless, “other applicants will be able to amend their filings with similar agreements at little cost,” Elmandjra claimed.

James Seyffart, an ETF analyst for Bloomberg Intelligence, outlined why he believes ARK, not BlackRock, is one of the top competitors.

21Shares, ARK, and Cboe are first in line because their next SEC decision date is 8/13/23 and we don’t yet have a date for the other 19b-4 applications like the one from BlackRock. I would assume Cboe is looking to update their 19b-4 rule change proposal to add a surveillance-sharing agreement with Coinbase if they believe it could be a path to an ETF approval.

In June 2021, Ark Invest submitted its first application for the Ark21Shares ETF by teaming with the Swiss ETF provider 21Shares AG; if approved, it will trade on Cboe’s BZX Exchange under the ticker symbol ARKB.

The firm is also the first to disclose the fees for its Bitcoin ETF; according to the filing, a proposed fee of 0.95% will be paid to 21Shares, which will use the money to pay operating costs.

Bitcoin ETF Hype Reignited With BlackRock’s Filing

So far, there is no spot bitcoin exchange-traded fund in the US since regulators have previously turned down several proposals claiming they would have encouraged market manipulation.

Still, despite numerous rejections and delays, the crypto industry remains optimistic.

Following BlackRock’s application for a Bitcoin ETF filing this month, one of the largest asset management companies in the world with more than $8 trillion in assets, the hype cycle surrounding a prospective launch was reignited.

Other leading AUMs like WisdomTree and $1.5 trillion asset manager Invesco too followed suit. The latter dropped its 19b-4 application for the second time after a similar filing back in the fall of 2021.

Ark Invest’s Cathie Wood Says Banks Are Losing Talent To Crypto

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Ark Invest CEO Cathie Wood has a word of caution for crypto skeptics. Speaking on the sidelines of the Bitcoin 2022 conference in Miami, the top exec said that cryptocurrency was created to stop reliance on legacy financial institutions. According to Wood, the Banks are already feeling the heat.

The leading investor who is one of crypto’s vocal advocates stated, “Banks have a big problem. They’re losing talent to crypto, so they’re having to raise wages to attract talent, and they’re losing business to DeFi. Lending and saving a lot of it is taking place in DeFi right now.”

As interest in decentralized finance or DeFi grows among investors, such applications could threaten the traditional banking world. There’s been a “share shift” when it comes to loans in DeFi, Cathie Wood said.

Cathie Wood, chief executive officer and chief investment officer, Ark Invest, gestures as she speaks during the Bitcoin 2022 Conference at Miami Beach Convention Center on April 7, 2022 in Miami, Florida.

Apart from that, Wood also pointed out political institutions are also starting to respond to crypto in a more positive way. “What we’re seeing is 180 degrees different today than it was a year ago,” she said.

Wood then took note of the shift in stance from U.S. Treasury Secretary Janet Yellen, who had previously expressed concern on crypto, citing its potential environmental problems and risk of illicit activity.

“I remember I was asked at the time and I basically said she hasn’t studied the technology and she hasn’t studied the instruments of the new asset class. Well, it seems like she’s been boning up,” Wood said.

Cathie Wood reiterated Bitcoin will top $1M by 2030

Harping on her January prediction Cathie Wood one of Bitcoin’s top evangelists said that BTC will scale by $1 million in 2030. It would come with a range of use cases, including as an insurance policy for people of means so that their wealth can’t be confiscated, she said.

Ark was the first public asset manager to gain exposure to bitcoin, in September 2015. Despite bullish narratives, Bitcoin on the price front remained in a correction phase falling by more than 8% in 7 days and trading at $42,533, press time. In the last 24 hours, the world’s dominant asset has registered a decline of 2%, according to coinmarketcap.

Cathie Wood says Bitcoin is the first global private digital currency system

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Cathie Wood, founder, CEO, and chief investment officer of Ark Invest stated that Bitcoin is the first global private digital currency system, which is based on rules. In a summit hosted by the Global Wealth Management Forum’s 2022 “New Economic and Financial Landscape under the Shared Global Recovery”, the exec spoke in detail on the stance adopted by different nations pertaining to Bitcoin adoption.

Citing the example of China where the majority of miners have already left for crypto-friendly shores owing to its administration crackdown. Wood also mentioned some parts of the world are yet to warm up their stance on digital assets, although their attitude is not as harsh as that of the Chinese government. The CEO then went on to mention the current crisis in Turkey where she predicted the likelihood of a blanket ban as opposed to El Salvador building an entire economy out of the king coin.

We think emerging markets will have a polarized attitude, either ban it or welcome it, for example, El Salvador agrees, encourages it, in Turkey, there is a kind of black market existence, the government is currently due to the currency Crisis, struggling. We know that eventually, they should ban the existence of Bitcoin, so now seeing similar problems all over the world, everyone is choosing a different way to deal with it. We are in some countries where Bitcoin is unstoppable.

Cathie Wood is known to make bold predictions. Besides that, the exec is in constant pursuit of finding new ways to invest in crypto assets.

Cathie Wood’s Ark ETF rake in 6.93M shares of SPAC

Cathie Wood’s Ark Invest has reportedly bought nearly 6.9 million shares of the special purchase acquisition firm or SPAC, that is merging with Circle, for $70.6 million through the company’s ARK Fintech Innovation exchange-traded fund [ETF]. According to MarketWatch, this purchase would represent a new position for the ETF.

Wood-backed Ark Invest’s ETFs have a long history of making big purchases in the crypto industry. Previously the investment management entity bought $80 million Robinhood shares after the prices retreated back in October 2021. Wood remained bullish on crypto despite not investing in the first futures BTC ETF that same month.