Ark Investment Management CEO Cathie Wood anticipates the cost of bitcoin to be more than $500,000 in 5 years’ time, which is over 10 times what it is today. She likewise shared her view on cryptocurrency regulation and Coinbase’s difficulty with the U.S. Securities and Exchange Commission (SEC).
Cathie Wood’s Ark Invest Predicts $500K Bitcoin
Cathie Wood, the CEO of Ark Investment Management (Ark Invest), talked about bitcoin and crypto regulation in an interview at the SALT conference Monday. Wood is likewise the company’s creator and CIO.
She was asked what bitcoin will deserve 5 years from now. Wood responded, “If we are right and companies continue to diversify their cash into something like bitcoin, institutional investors start allocating 5% of their funds into … bitcoin, or other crypto,” then:
We think that the cost will be significantly of where it is today, so rather of $45,000, [it would be] over $500,000.
Wood likewise commented on cryptocurrency regulation. Based on her conference with state, regional, and federal regulators, she explained: “Our working assumption from the beginning was that … no regulator wanted to be blamed for preventing the next big technology breakthrough to happen in the U.S.”
She continued to state she is “really happy” that the chairman of the SEC, Gary Gensler, “understands crypto and understands the merits of bitcoin in particular.” Nonetheless, she kept in mind, “He is a regulator though and he’s a hardcore regulator.”
The CEO of Ark Invest then discussed cryptocurrency exchange Coinbase’s difficulty with the SEC concerning its loaning item, keeping in mind that she “was shocked” to hear that Coinbase got a Wells Notice. “Are you kidding? They haven’t even released the product. What is this?” she exclaimed.
Coinbase exposed recently that it got a Wells Notice from the SEC. However, the exchange stated that it does not understand what issue the SEC has with its Lend item. “We don’t know why … We got no explanation from the SEC,” the exchange composed.
“I think what that Wells Notice is doing, it’s a call out by regulators saying we got to discuss this stuff because this is happening very quickly and I think we are going to bring courts into the system,” Wood believed, including:
This took place in Canada. A business called 3iq took legal action against the regulator there and won in court so they had the ability to concern bitcoin ETFs [exchange-traded funds], and closed in funds and ether also.
She concluded: “So, I’m beginning to think that Coinbase doesn’t mind it at all and if you saw the stock reaction, it hardly budged.”
When asked which cryptocurrency she would buy if she might choose simply one, Wood stated she would default to bitcoin “because countries are now deeming it legal tender.” The Ark Invest executive is describing El Salvador where the nation’s Bitcoin Law entered into result on Sept. 7 making BTC legal tender along with the U.S. dollar.
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