Ark Bitcoin Spot ETF was approved this week! A large amount of institutional funds will pour in, and the female stock goddess strikes again!

The U.S. Securities and Exchange Commission (SEC) will decide before January 10 whether to approve Ark Investment/21Shares’ application to issue a Bitcoin spot ETF. A total of 14 asset managers are currently seeking approval. Ark Investment founder Cathie Wood said in an exclusive interview with CNBC on Monday that if they and other institutions receive SEC approval, it will open up new opportunities for institutional investment. They have been in talks with some institutions, which are currently more interested because the SEC is effectively paving the way for this market.

Cathie Wood said that Ark Investment does believe that the possibility of its own Bitcoin spot ETF being approved this week is very high because the SEC has begun to raise questions after multiple rejections, and it is very good. Very detailed, very technical questions, so she believes the SEC has asked all the questions it needs to answer and most institutions are probably involved in the process.

Cathie Wood believes that while the approval of a Bitcoin spot ETF may not be a Sellthenews event, over our five-year investment horizon we expect inflows into this new asset class, especially institutional funds, will Quite impressive. Furthermore, institutions do not need to allocate large amounts of Bitcoin to drive up the price of this scarce asset.

Optimistic about Bitcoin continuing to rise

In February last year, Ark Investment released a research report "BIG IDEAS 2023", optimistic that Bitcoin could rise to US$1 million within 10 years. Cathie Wood now says that she is optimistic that Bitcoin will continue to rise because Bitcoin is digital gold. The current market value of gold reaches US$12 trillion, while Bitcoin is as high as US$800 billion. The substitution effect is taking place: if the institutional allocation ratio reaches 2.5% to 5%, which is what we think will eventually happen, you will see 0.5% and then 1%, and you will find that is probably the biggest reason why Bitcoin is going up. We have 19.5 million Bitcoins mined, about 15 million are in the hands of long-term holders who have not moved Bitcoin for over 155 days, and we know that the Bitcoin supply will only reach 21 million, so It’s true… Bitcoin is becoming a scarce asset.

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