Increased Probability of Bitcoin Reaching $1.5 Million, Says Ark Invest CEO
Following the recent approval of 11 spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), Cathie Wood, the CEO of Ark Investment Management (Ark Invest), has reiterated her bullish bitcoin price predictions.
In Ark’s annual report titled “Big Ideas 2023,” Wood stated that their base case scenario for the price of bitcoin is in the range of $600,000. However, their “bull case” prediction sees bitcoin reaching as high as $1.48 million per coin. With the approval of spot bitcoin ETFs, Wood believes the probability of their bull case has increased, stating that they see a path to $1.5 million by 2030.
“This is a big idea. It is the first global decentralized digital … rules-based monetary system in history. It’s a very big idea,” Wood remarked.
The Impact of Spot Bitcoin ETFs
Ark and 21shares were among the 11 spot bitcoin ETF proposals approved by the SEC. On the first day of trading, these ETFs generated $4.6 billion in trading volume. Notably, Blackrock, the world’s largest asset manager, also launched its Ishares Bitcoin Trust with $1 billion in trading volume.
Wood anticipates that the approval of spot bitcoin ETFs will drive substantial institutional inflows into bitcoin, resulting in a significant price increase for the cryptocurrency. However, it should be noted that SEC Chair Gary Gensler clarified that the agency’s approval does not imply an endorsement of bitcoin.
Hot Take: Bitcoin Still Has Room to Grow
With the approval of spot bitcoin ETFs, Cathie Wood and Ark Invest remain optimistic about the future of bitcoin. Wood’s bullish price predictions, including the possibility of bitcoin reaching $1.5 million, signal her confidence in the continued growth and adoption of the cryptocurrency. As institutional interest in bitcoin grows and regulatory barriers are gradually lifted, the cryptocurrency market is poised for further expansion. Keep an eye on the developments surrounding spot bitcoin ETFs and their impact on bitcoin’s price trajectory.
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