Cathie Wood is the CEO of ARK Investment Management. He recently proclaimed that the future holds a lot of opportunities for Bitcoin. The companies are likely to update their balance sheets by adding crypto assets like Bitcoin (BTC).
Cathie’s Wood interview with Yahoo Finance
In his interview with Yahoo Finance, Cathie suggested that IT institutions will lead the respective movement. Especially, the ones that support the currently trending BTC technology in specific will emerge in the front.
He further disclosed that he has been approached by various companies asking for suggestions regarding BTC. According to him, these companies wish to clarify whether BTC and other digital currencies have the potential to replace cash in the future.
BTC’s role as an inflation hedge instrument
The supply of legal tender is on a continuous run in each country to deflate the economic impact of the newly spread coronavirus. Within this context, BTC has successfully registered its spot as a potential hedge instrument against inflation.
To highlight the specifics, MicroStrategy, a company registered with NASDAQ, is planning to increase its stake in BTC. The company announced a purchase of a supplementary 314 BTC last week. The value of the purchase is equivalent to 1 billion yen according to the current market price.
ARK published a report on the 26th of January. Besides, if a firm listed on the US stock index “S & P500” replace 1% of its cash with BTC; the current price of BTC will automatically soar up to 40,000 dollars.
According to the analysis of the company, the market capitalisation of BTC will incorporate a bracket of more than $ 500 billion to $ 1 trillion. It can further range up to a value of about $ 5 trillion in the coming five to ten years.
Current status of ETFs
Mr. Cathie, at an event held on 26th, also discussed the current status of BTC’s exchange-traded fund. The ETF, according to him, will not arrive at a market capitalization value of $2 trillion. He quoted that the US Securities and Exchange Commission will not approve these funds due to the increasing demand for BTC.
However, an ETF research analyst, James Seyffart recently stated to Bloomberg that the appointment of Gary Gensler as the SEC secretary could change things in the context of ETFs. He said that this choice will eventually result in the approval of ETFs by the end of 2021.
Thus, it will be interesting to see what the future holds for the progress of these ETFs.
