Tag: Cathie Wood

Cathie Wood: SEC to Approve Multiple Bitcoin ETFs Simultaneously

by Blockchain News

Cathie Wood, Chief Investment Officer and Portfolio Manager at ARK Investment Management LLC, has hypothesised that the United States Securities and Exchange Commission (SEC) would approve many spot Bitcoin ETFs all at the same time.

During an interview with Bloomberg on August 7, 2023, Wood, who has over 40 years of experience and started ARK in 2014, provided this significant prediction. The conversation took place in 2023.

An application for a spot Bitcoin exchange-traded fund was submitted by ARK Investment Management in June of 2023. ARK Investment Management is well-known for its focus on disruptive innovation, and the firm submitted the proposal.

The growing interest from major financial firms like BlackRock, Fidelity, WisdomTree, VanEck, and Invesco, all of which have submitted applications for spot Bitcoin ETFs similar to ARK’s, reflects a broader trend in the market.

Grayscale, a prominent digital currency investment authority founded in 2013 by Digital Currency Group, is currently engaged in legal proceedings with the SEC. Holding assets including BTC, ETH, ETC, MANA, SQL, and BCH, the company sent a letter to the regulator in July, urging simultaneous approval of all proposed spot Bitcoin ETFs. This request was made to promote fairness among applicants and prevent any single ETF from gaining an advantage. 

The SEC has until August 13, 2023 to make a judgement on ARK’s petition; so far, the agency in the United States has never granted its approval to a spot cryptocurrency ETF. ARK is proposing to list its shares in an exchange-traded fund (ETF).

The regulatory body in charge of the sector has a maximum of 240 days, which brings the deadline for their decision forward to January 2024.

Because regulators in other countries, most notably Canada, have in the past allowed analogous spot ETF filings from bitcoin firms, the drive for spot Bitcoin ETFs is gathering momentum. The demand for spot Bitcoin ETFs receives a further boost as a result of this.

The prediction of simultaneous approval made by Wood and the campaign for fairness made by Grayscale both bring to light the possibility of a shift in the regulatory atmosphere for bitcoin exchange-traded funds (ETFs) in the United States. 

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ARK Investment Launches Its First Crypto Managed Account for RIAs

by Blockchain News

Independent managed account provider Eaglebrook Advisors has announced a partnership with Ark Invest to develop the ARK Cryptocurrency Strategy and ARK Crypto Asset Strategy.

Cathie Wood’s investment firm ARK Investment is launching its first crypto Separately Managed Account (SMA) for Registered Investment Advisors (RIAs).

SMAs are portfolios created by financial advisors or investment firms for individual investors, and the partnership will allow ARK to expand its services beyond exchange-traded funds (ETFs).

Cathie Wood, Founder, CEO, and Chief Investment Officer of ARK said:

“Through our partnership with Eaglebrook, we now can offer actively managed crypto strategies to the wealth management industry. The strategies will be separately managed accounts (SMAs) designed to meet the needs of financial advisors, wealth managers, and their clients by offering direct ownership, low minimums, and portfolio reporting integration among other benefits.

Advisors can differentiate themselves and add to a client’s diversification by adding this new asset class to their portfolios. Our partnership combines Eaglebrook’s best-in-class technology-driven investment platform with ARK’s established digital asset experience to deliver a differentiated, turnkey investment solution.”

The partnership will see both crypto strategies actively managed by Cathie Wood’s Ark Invest available to clients of registered investment advisors as separately managed accounts.

ARK and Eaglebrook are jointly developing the ARK Cryptocurrency Strategy and ARK Crypto Asset Strategy, where the Cryptocurrency Strategy primarily invests in Bitcoin and Ethereum, and Ark’s Crypto Asset Strategy is designed to invest in smart contract networks, DeFi and Web3, infrastructure and Top 10 – 20 coins related to scaling.

“It’s a game-changer for the industry and another sign of mainstream adoption,” said Roddy Chisholm, chief operating officer at Eaglebrook Advisors.

In early September, Ark Investment Management LLC, owned by Cathie Wood, expanded its research arm as it seeks deeper development in various fields, including blockchain and AI.

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Ark Invest Expands Research Arm, Focusing on Blockchain Technology and AI

by Blockchain News

Ark Investment Management LLC, owned by Cathie Wood, escalated its team. The investment management firm plans to expand its research arm as it seeks deeper development in various fields, including blockchain.

Cathy Wood’s ARK Investment Management has promoted Brett Winton to chief futurist, put four senior research analysts on board, and hired five research assistants, according to official documents.

Brett Winton said：

“We believe that, collectively, artificial intelligence, robotics, energy storage, genomic sequencing, and blockchain technology will rise from less than 10% of the global public equity market capitalization to more than 60% by 2030, representing the largest period of value- creation in history.”

Winton said he would drive ARK’s long-term forecasts across convergent technologies, economies, and asset classes. ARK will dimension the impact of this unprecedented technological boom as it transforms public equities, private equities, crypto assets, fixed income, and the global economy.

ARK founder and CEO Cathie Wood believes this reorganization will expand the size of the team while enabling convergence between the technologies that create the S-curve and the S-curve.

Four senior research analysts got promoted to research directors, including Tasha Keeney, who leads financial modelling for the research team; Sam Korus, who directs the autonomous technology and robotics team; Simon Barnett, who studies life sciences; and Frank Downing, who focuses on Internet development.

In addition, ARK will hire five research assistants to focus on autonomous technology and robotics, digital health, next-generation internet and venture capital.

As the broader digital currency ecosystem tumbled across the board, as did the firm’s investment vehicles, shares in Ark Invest’s portfolio also plunged. The Ark Innovation ETF is down 57.74% so far this year.

Ark Invest also sold off $500,000 worth of Robinhood shares based on Tuesday’s closing price of $8.43 in July.

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1Bn Crypto Users Forecasted in the Next Decade, Says Coinbase CEO

by Blockchain News

Brian Armstrong, CEO of Coinbase Global Inc, said there would be as many as 1 billion users of cryptocurrencies within the next decade.

Bloomberg reported, citing Armstrong’s remarks during a commentary about price volatility related to the cryptocurrency market at Monday’s Milken Institute Global Conference.

There are currently only about 200 million users of cryptocurrencies in the global market.

During the meeting with Cathie Wood, the CEO of Ark Invest, who made a bullish prediction on bitcoin Ryan Armstrong said:

“My guess is that in 10-20 years, we’ll see a substantial portion of GDP happening in the crypto economy,”

DeFi is able to provide almost all financial services, with traditional and central institutions, usually banks, but on the blockchain. Any traditional service provided by a financial institution can be provided through DeFi. In short, Defi is a blockchain-based financial service mirrored by conventional financial services, creating new services or derivatives derived from the unique capabilities of blockchain. Because Defi does not require intermediaries like traditional banks, it can freely trade tokens or borrow tokens.

Meanwhile, Wood believes Bitcoin to be a game-changer by explaining why the cryptocurrency is soaring and gaining traction as a hedge, saying that she considers decentralized finance is great promising, urging the industry to look up to the issue of talent acquisition by adding that:

“In the case of DeFi and next-generation internet, we are seeing a lot of financial companies losing talent to crypto. So they have to take it seriously, or else they are going to be hollowed out.”

As the cryptocurrency market continues to expand, Coinbase has taken steps to expand its footprint to the rest of the world by acquiring and investing in large exchanges elsewhere.

In March, Coinbase reportedly announced plans to acquire a Brazilian holding company called 2TM, the parent company of Mercado Bitcoin – a Bitcoin exchange platform from Brazil – which is regarded as the largest crypto exchange in the Latin American region.

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Bitcoin to $1M, Ethereum to $180,000 by 2030: ARK Report

by Cryptobriefing

Key Takeaways

  • In a new research report, ARK Invest has predicted that Bitcoin could hit $1 million by the end of 2030.

  • ARK argued that Bitcoin represents only a fraction of the value of global assets.

  • The report also forecasted Ethereum’s market capitalization to exceed $20 trillion in the same timeframe.




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In a new research report, American investment firm ARK Invest has shared bold price predictions for Bitcoin and Ethereum for the end of this decade.

ARK Makes Bull Case for Leading Crypto Assets 

ARK Invest is still bullish on crypto, and specifically the two leading assets in the space.

Cathie Wood’s U.S.-based investment firm has published a new report titled “Big Ideas 2022,” painting a rosy picture for both Bitcoin and Ethereum. The report gives a price target of $1 million per Bitcoin by the end of 2030 and also says that Ethereum’s market cap could exceed $20 trillion. Ethereum has a supply of about 120 million and is estimated to burn roughly 1 million coins annually once it merges to Proof-of-Stake, which would put the supply closer to 110 million by the end of the decade. That would mean the price of ETH would be about $180,000 if ARK’s prediction came true. 

Discussing Bitcoin’s growth potential, ARK analyst Yassine Elmandjra wrote:



“Bitcoin’s market capitalization still represents a fraction of global assets and is likely to scale as nation-states adopt it as legal tender. According to our estimates, the price of one Bitcoin could exceed $1 million by 2030.”

At $1 million per Bitcoin, anyone buying into the asset today would make a return of about 26 times the current price of $37,800. The firm based its long-term call on the argument that the top crypto asset represents only a fraction of the value of global assets amid increasing adoption each year. 

ARK Invest offers several actively managed exchange-traded funds and holds $23.9 billion in assets under management. It’s hoping to launch a Bitcoin ETF product in the near future.

Wood has made no secret of her bullish stance on crypto: in 2021, she predicted that Bitcoin could hit $500,000 by 2026. She made the comments in a year that saw increased institutional demand in crypto pave the way for the first Bitcoin futures ETF to hit the U.S. market in October 2021.


While ARK and Wood may have shown confidence in Bitcoin, the market has shown less enthusiasm toward the asset in recent weeks. In the last 30 days, Bitcoin has plummeted from $51,000 to six-month lows below $34,000. Though it’s posted a slight recovery over the last few days, it’s still 44% down from its all-time high of $69,000 recorded in November 2021.

Despite the poor market conditions, ARK Invest’s research points to how Bitcoin adoption could grow on a long-term time horizon. The report used Bitcoin’s on-chain metrics to show that its largest holders have focused on the long-term. ARK stated that the number of long-term investors rose sharply in 2021, with addresses showing long-term behavior collectively holding 13.5 million Bitcoin that has not moved in 155 days.  

Justifying its $20 trillion market capitalization target for Ethereum, ARK said that ETH has value as the default currency in DeFi, NFTs, and other Ethereum-native applications. It added that ETH could take a substantial chunk of the global financial services market, which is expected to hit a valuation of $123 trillion by 2030. ETH currently trades at $2,630, putting Ethereum’s market cap just over $312 billion. It’s down 47% since November.

“According to our research, Ethereum could displace many traditional financial services, and its native token, Ether, could compete as global money,” the report read.

Disclosure: At the time of writing, the author of this piece owned ETH and other cryptocurrencies.



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ARK Invest: Why Bitcoin Could Be Worth $1 Million Per Coin By 2030

by NEWSBTC

ARK Invest, the brainchild of savvy investor Cathie Wood, has had a rough go over the past few months. The flagship fund ARKK is down nearly 60% from it’s record high last year, however Wood and her team of analysts aren’t stopping their full-focus on innovative and forward-thinking investments – even when fundamental investments are running the show.

This week was host to ARK’s ‘Big Ideas Summit,’ and ARK crypto analyst Yassine Elmandjra supplemented that material with a boisterous bitcoin tweet that will be music to BTC maxi’s ears.

Cathie Wood & ARK Invest: Notorious Bulls

Elmandjra’s tweet, which can be found below, showcases how a single BTC unit could hit $1M in value, with a couple prime assumptions:

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Let’s take a look at that graphic specifically to drill down on the assumptions being made here, and why they’re important:

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The core key assumption here, of course, is the staggering growth in bitcoin’s market cap over the next 9 years. In this model, the ARK team is projecting growth from a current market cap of $1.1T to a $28.5T market cap. How does this scale? According to an October 2021 report from securities trade group SIFMA, the U.S. equity markets carry a market cap around $50T – making a $28.5T market cap for a global bitcoin market seem not all that unreasonable. Elmandrja’s graphic also states anticipated breakdown of the use case allocated within the market cap, and it’s representative contribution towards the price per BTC.

Related Reading | Bitcoin Recovers From Seven Month Low Of $33K

ARKK, the flagship innovation fund behind ARK Invest, has had a difficult year following strong success. Can growth stocks and innovative investments turn around? | Source: NYSE: ARKK on TradingView.com

More From The Research Desk…

Elmandrja and the ARK Invest team continue on to note that even assuming a $28.5T market cap could be more conservative than ambitious. Elmandrja added, “If Bitcoin does hit $1 million, it will still only represent a fraction of global asset values” and also highlighted the notorious ‘diamond hands’ that bitcoin holders often exhibit, stating that “market participants are maturing and remain long term focused. Aggregate cost basis (realized cap) is at all time highs and more than 13.5 million btc are held by long-term holders.”

This, of course, isn’t likely anything groundbreaking to those who have studied the bottom-line extensively. Compared to other relative global markets, a $28.5T bitcoin market cap today would even be trading at multiples less than comparable markets, such as the global real estate market, global bond market, or global equities market.

Elmandrja’s full thread is a worthy read for these reasons and several others that take deep dive into ARK’s optimism around bitcoin (and crypto at large) as an investment vehicle. You can also read their broader Big Ideas 2022 report here.

Related Reading | Bitcoin Whales Take Advantage Of Market Crash To Gobble Up Millions In BTC

Featured image from ark-invest.com, Charts from TradingView.com
The writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.

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ARK Invest CEO Cathie Wood On What Will Drive Bitcoin Correction

by NEWSBTC

The price of bitcoin continues to struggle and investors look towards various indicators to know when the price of the digital asset would begin to correct once again. While some indicators have shown promise in predicting what may yet come, it remains a guessing game as bitcoin has always been known to have a mind of its own when it comes to price movements.

To this end, Cathie Wood, famed CEO of ARK Invest, has shared some interesting thoughts around the market correction and what will drive it. The bitcoin bull continues to look towards the crypto market through a positive lens as she shares what will bring about the market correction.

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Crypto Market Succumbs To Strike Against Technology

The whole of the crypto market is built on the back of new technology and as such, will sometimes follow technology trends in the broader market. ARK Invest CEO Cathie Wood posits in a new video on the ARK Invest YouTube channel that this is what is behind the recent crashes.

Basically, there has been a strike against technology, growth, and innovation in the equity markets and the spillover of this strike is what brought down prices across the crypto market. However, the CEO does not expect this strike to last long.

Related Reading | Galaxy Digital CEO Mike Novogratz Says Bitcoin Has Hit The Bottom

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Addressing the concerns about technology and innovation stocks being in a bubble, the CEO discounts this theory. Instead, explaining that these stocks are merely in what she refers to as a “deep value territory.”

Wood is known to take risky bets on technology and innovation assets, which have paid off in the long run for her fund, as well as her clients. For the CEO, Bitcoin falls into this territory and has been vocal about her support for the digital asset.

She also predicts a highly profitable future for tech and innovation assets, expecting a 10x growth in the next 10 years.

“Based on the last eight years of our research, the opportunities will scale from $10-12 trillion today, or roughly 10% of the global public equity market cap, to $200+ trillion during the next ten years.”

Where Is Bitcoin Headed?

The new year is now in full swing and the implications of the holiday spending have been showing on the markets. Bitcoin which hit its all-time high of $69K last year has since lost over 30% of its value. The price is not in the $41,000 range, where it continues to struggle as bears try to pull it down.

Bitcoin price chart from TradingView.com

BTC trading north of $41K | Source: BTCUSD on TradingView.com

For Cathie Wood, it has always been about the long game. Last year, the CEO, at various times, said that she expects the price of bitcoin to grow 10x from its value at the time. She attributes this growth to institutional investors finally moving at least 5% of their portfolios into the digital asset, at which point, bitcoin’s price will grow as high as $500,000 apiece.

Featured image from Page One, chart from TradingView.com

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Crypto Bull Cathie Wood Says Ethereum Is More Undervalued Than Bitcoin

by NEWSBTC

The Bitcoin versus Ethereum debate has been going on for years and waxes stronger as the market grows. Pitting the two top cryptocurrencies against each other has been one of the greatest pastimes for the market. However, not everyone subscribes to the school of thought that they are in competition.

ARK Invest CEO Cathie Wood is known in the crypto space for giving her outlook on Bitcoin but Ethereum has been largely left out of the conversation. Wood is mostly known in the space for her bitcoin at $500,000 prediction, which she has stood by at various points.

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The CEO has always expressed that she believed that bitcoin is still largely undervalued and has a lot of growing to do in the coming years. However, Wood has pointed out that number 1 altcoin ethereum is even more undervalued than bitcoin.

Ethereum Is Still Undervalued

Wood was on CNBC’s Squawk Box to talk about the crypto market. On the show, the CEO expressed that ethereum was still greatly undervalued. She put this in perspective using bitcoin, the largest cryptocurrency in the market, which she believes is still greatly undervalued. Wood explained that as undervalued as bitcoin is, ethereum is still way undervalued compared to it.

One of the major reasons behind investments in ethereum has been the utility of the digital asset. Decentralized finance (DeFi) has seen tremendous success despite been only a year old and ethereum hosts the majority of DeFi activities. Wood reiterated the fact that DeFi was the driving force behind the digital asset’s success.

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“The fact that it is the venue, or the protocol, for DeFi and for NFTs suggests to us that it is even more undervalued than Bitcoin is, just because there are new worlds growing up on top of it.”

Ethereum price chart from TradingView.com

ETH price recoers above $4,000 | Source: ETHUSD on TradingView.com

According to the CEO, ethereum is still in its infancy and has a long way to go, whereas bitcoin has already been established for being a monetary system. She added that institutions are going to move more into DeFi and NFTs, which would “accelerate” its growth.

Still Bullish On Bitcoin

Wood did not fail to reiterate her stance on bitcoin. The CEO noted that institutional investors were moving into the digital asset. Bitcoin has become impossible to ignore and Wood explained that institutions have to explore it. “Institutional managers have to look at new asset classes that are evolving and that have low correlation,” the CEO said. “That’s the Holy Grail in terms of asset allocation.”

Related Reading | Galaxy Digital CEO Explains Why Ethereum Is Outperforming Bitcoin

Bitcoin has no doubt had a good run in its over a decade of existence. However, Cathie Wood expects even more growth for the asset. Last month, the CEO expressed that with institutions moving more into bitcoin, it could rise to as high as $500,000 in the next five years.

Featured image from Crypto Adventure, chart from TradingView.com

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Institutional Buys Will Put Bitcoin At $500,000 In Five Years, Cathie Wood

by NEWSBTC

Cathie Wood is no longer a hardly recognizable name in the bitcoin space. The CEO of ARK Invest has become one of the most prominent proponents of the digital asset. Wood had pitched her tent with bitcoin a long time ago and has not looked back since then. In fact, she has proven to be one of the most bullish in the space with her predicted value of bitcoin at $500,000.

Wood had previously placed the asset at the exact value at different times in the past and she seems unshaken in her resolve after reiterating her stance on the matter. Once again, the CEO has come to defend her belief in the exact. For the long-term, she sees the asset rising above $500,000, putting the time frame at only five years.

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What Will Drive Bitcoin To $500,000?

ARK Invest CEO Cathie Wood appeared on Barron’s on Wednesday. In the interview, the CEO opened up about her expectations for bitcoin and what she believed would drive the digital asset there. The first thing was institutional buy-ins into the asset.

It is no secret that institutional investors have ramped up their stakes in the digital asset market. Inflows for the year broke the record set in 2020 with two months still left to go in the year. Total asset under management for bitcoin quickly rose and is now sitting at a record high of $56 billion, according to the last CoinShares report. This increased momentum, says Wood, is what would drive bitcoin towards $500,000.

Bitcoin price chart from TradingView.com

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BTC price recovers from dip | Source: BTCUSD on TradingView.com

Despite the rapid rate of investment among institutional investors, it is still estimated that less than 5% are allocated to bitcoin. However, the trend is growing among big money and Wood explained that if “institutional investors move into bitcoin and allocate 5% of their portfolios,” then bitcoin would hit $560,000.

The CEO expects this to happen but puts the timeline in five years. This means that Wood sees the price of bitcoin touching above $500,000 by 2026 given current investment trends.

The Evidence Is In The Data

One thing that also backs up the CEO’s strong resolve in this prediction is the data recorded on the bitcoin blockchain. Blockchain technology makes it so that every transaction carried out is public information and she explained that this data helps to see how money is changing hands in the space. “We can tell it’s happening because of on-chain analysis,” Wood said.

Related Reading | Mt Gox Gets Approval To Return 141,686 To Victims Affected In 2014 Hack

Although bullish on institutional money coming into the digital asset, Wood had expressed surprise over the recent move by companies such as Square, Tesla, and MicroStrategy diversifying their balance sheets using bitcoin. However, the market expected this given that all of these companies have Bitcoin Maximalists at the helm.

Bitcoin’s low correlation with other cryptos may also be a convincing factor for institutional investors who are looking to invest in the space. “The correlation is very low,” said Wood, and since the correlation of returns by investing is low, then institutions may well be raising their returns and risking less over time, she added.

Featured image from PageOne.ng, chart from TradingView.com

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Here’s What Could Add $700,000 to the Price of Bitcoin, According to Cathie Wood of Ark Invest

by Dailyhodl

ARK Invest CEO Cathie Wood says that institutional investors and emerging markets can send the price of Bitcoin (BTC) surging to $760,000.

In a new interview with Saxo Bank CIO Steen Jakobsen and head of equity strategies Peter Garnry, Wood explains why Bitcoin is the new asset class that institutions have been looking for.

 

“The correlation of returns here is very, very low relative to any other asset base. The highest correlation between Bitcoin and other assets is real estate, and that’s a 0.3.

That’s the highest. If you look at most others, very low correlations. This is what institutional investors are seeking.”

Wood says that emerging markets are likely to embrace Bitcoin, particularly after El Salvador implemented the flagship cryptocurrency as a form of legal tender in September.

“Bitcoin is the first private, global, rules-based monetary system that the world has ever known. We believe that what’s happening in El Salvador is unbelievable.

We believe emerging markets are going to embrace Bitcoin. Many of them have corrupt regimes and they don’t trust their monetary authorities. They don’t trust their politicians generally, and so we think emerging markets are a huge use case here.”

Wood says that BTC could go up by an astronomical $700,000 if emerging markets and institutions embrace the digital asset worldwide. Emerging markets would add an additional $200,000 in value, with institutions adding $500,000 more.

“That use case alone will add, I believe, the number is $200,000, if it were adopted fully throughout the emerging markets [excluding] China. That would account for $100,000 to $200,000.

If institutions were to allocate 5% of their portfolios globally [excluding] China, that use case alone would be $500,000 in addition to the $60,000 dollars in Bitcoin’s price.”

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