Bitcoin will be worth $500,000 by 2026, Ark Invest CEO predicts
Cathie Wood, the CEO of Ark Invest, expects Bitcoin to climb to $500,000 in the next five years.
The avid Bitcoin advocate voiced her bullish prediction during an interview with CNBC anchor Andrew Ross Sorkin at the SALT Conference in New York City on Monday. In response to a question about where she sees Bitcoin in the next five years, Wood said:
If we’re right and companies continue to diversify their cash into something like Bitcoin, and institutional investors start allocating 5% of their funds in Bitcoin [...] we believe the price will be ten-fold what it is today. Instead of $45,000 over $500,000.
Sorkin also quizzed Wood on her preferred digital asset. Interestingly, Bitcoin is still her go-to choice.
That is becoming a harder and harder question to answer […] I think I’d default still to Bitcoin because countries are now deeming it legal tender and we haven’t even put that into our thinking.
Meanwhile, a late filing on Friday revealed that the $5.7 billion ARK Next Generation Internet ETF (ARKW) modified its prospectus to include exposure to Bitcoin via Canadian ETFs.
Despite the bullish stance from US investors, firms seeking to launch crypto ETFs on US soil are eagerly waiting for the SEC to approve a product. VanEck and several others have submitted applications with the financial watchdog to launch Bitcoin and Ethereum ETFs. However, the SEC has continued to postpone its decision. As reported by BTC PEERS, last week the Commission postponed its decision on VanEck’s Bitcoin ETF to November 14, extending the original approval date by an additional 60 days.
The increase in ETF applications by large firms is a testament to a growing demand for Bitcoin exposure through traditional investment vehicles in the United States.
According to Bloomberg, ARKW already enjoys about a 5.5% exposure to Grayscale Bitcoin Trust (GBTC).
GBTC is one of the easiest ways for institutional investors to gain indirect exposure to Bitcoin. However, there is a six-month forced lockup period before shares can be redeemed. As a result, it normally trades at a major premium or a discount, which is why ARK sought exposure through other Canadian ETFs.