Ark Investment Management CEO Katie Wood doubts US regulators will approve a bitcoin exchange-traded fund (ETF) before BTC’s market capitalisation reaches $2 trillion.
„Demand has to be met, so it has to exceed a trillion dollars. I think it needs $2 trillion before the US Securities and Exchange Commission (SEC) has confidence in bitcoin ETFs,“ Wood said at the ETF Trends Immediate Edge online conference on Tuesday, 26 January.
Bitcoin’s market capitalisation hovered below $600bn on Tuesday.
Wood was optimistic about bitcoin’s prospects under Gary Gensler, the former CFTC chairman and MIT professor appointed by US President Joe Biden to head the SEC.
Gensler has become the SEC’s most knowledgeable chairman on cryptocurrencies and blockchain, as he served as advisor to the Digital Currencies Initiative at MIT and conducted research on blockchain and financial technology.
Wood’s presentation on Tuesday also made bold predictions about the price of bitcoin if „institutional adoption“ continues. Wood said that if every S&P 500 company invested 1% of its assets in bitcoin, its price would rise by $40,000.
„An institutional allocation of 2.5% to 6.5% could raise the price of bitcoin from $200,000 to $500,000,“ Wood said in her presentation.