Cathie Wood: Bitcoin ETF Approval Unlikely Until Market Cap Rises to About $2T

 Cathie Wood: Bitcoin ETF Approval Unlikely Until Market Cap Rises to About $2T

Ark Funding Administration CEO Cathie Wooden mentioned she doubts U.S. regulators will green-light a bitcoin exchange-traded fund earlier than the unique cryptocurrency’s market cap hits $2 trillion.

“The flood of demand needs to be glad so it’s going to should get effectively over a trillion {dollars} – $2 trillion, I believe, earlier than the [U.S Securities and Exchange Commission] will really feel comfy about” a bitcoin ETF, Wooden mentioned at Tuesday’s ETF Developments Massive Concepts occasion.

Bitcoin’s market capitalization hovered a tick underneath $600 billion at press time Tuesday.

Wooden was bullish on bitcoin’s prospects underneath Gary Gensler, the previous CFTC commissioner and MIT digital forex professor who has been nominated to guide the SEC by President Joe Biden. Wooden referred to as Gensler “very professional bitcoin” and praised the SEC’s crypto savvy management.

Gensler, who would undoubtedly turn into essentially the most crypto educated SEC chair if confirmed, has nonetheless described himself as “a bit bit middle minimalist on Bitcoin.” He’s extra of a “middle maximalist” about blockchain applied sciences and good contracts, nevertheless.

Wooden’s Tuesday presentation additionally featured some daring projections about bitcoin’s worth potential ought to institutional and company adoption tendencies proceed. Citing MicroStrategy’s bitcoin-first treasury coverage, Wooden mentioned that if each S&P 500 firm invested 1% of their property in bitcoin the value would improve by $40,000.

“Institutional allocations between 2.5% and 6.5% might impression bitcoin’s worth by $200,000 to $500,000,” learn one slide deck.

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