Cathie Wood believes the SEC’s spot Bitcoin ETF decision could have a major impact on institutional adoption of cryptocurrencies.
Wood sees this impending approval as a pivotal moment, suggesting that this approval could be the “final approval” for institutions considering investing in cryptocurrencies. ARK Invest, in collaboration with 21Shares, is awaiting a decision on its ARK 21Shares Bitcoin ETF (ARKB) proposal, a ruling expected on January 10th.
The SEC’s previous approval of a Bitcoin futures ETF in October 2021 was seen as a cautious yet progressive step despite concerns about counterparty risk compared to cold storage spot products backed by Bitcoin. Most Bitcoin ETF offerings appoint Coinbase as the custodian, increasing security and legitimacy.
Grayscale Investments’ court victory over the SEC last July further highlights the tension and changing environment. The court called the SEC’s decision to deny Grayscale’s conversion to a Bitcoin ETF while allowing futures-based funds “arbitrary and capricious.”
Wood’s bullish outlook, predicting that the value of Bitcoin (BTC) could exceed $1 million in the long term, is consistent with the high confidence of Bloomberg Intelligence analysts to approve a spot Bitcoin ETF by January 10th. . This optimism is a departure from the SEC’s historical perspective. Reluctance to support spot Bitcoin ETFs.
Ophelia Snyder, president of 21Shares, noted a pattern has been broken in recent approvals, indicating a possible change in the SEC’s stance. Recent updates to Bitcoin ETF filings, such as BlackRock’s inclusion of seed capital language and technical amendments addressing issues such as electricity use in Bitcoin mining, suggest active dialogue with the SEC.
The entry of major players like BlackRock into the Bitcoin ETF space has revitalized the efforts of other financial giants like Fidelity and Invesco. Wood anticipates that multiple companies, including ARK Invest, could receive approval simultaneously, depending on the details of their submissions.