Ark Investment Management founder and CEO Cathie Wood said the likelihood that U.S. regulators would approve a Bitcoin exchange-traded fund had increased under Biden’s government.
In an interview with CNBC’s Bob Pisani today, Wood said there are two signs the Securities and Exchange Commission may be more open to easing a Bitcoin (BTC) exchange traded fund, or ETF. Under previous administrations, the regulator has not approved any Bitcoin ETFs, to the concern of the industry.
Ark Invest CEO specifically said she was encouraged by Joe Biden’s choice of SEC Chairman Gary Gensler. Gensler is known as someone who understands the underlying technology of digital assets and BTC itself. In addition, Wood reported FinHub leader Valerie Szczepanik, known as the “Crypto Czar”, directly to the next chairman as a bullish sign.
“I think the likelihood of an ETF has increased,” Wood said. ‘[Gensler] understand the technology, and I think he understands the currency itself. […] I think there are now individuals involved who really understand the space. ‘
Wood realized that institutional interest in the crypto-space had risen recently, but said she did not expect it to be driven by a broad replacement of Bitcoin for cash on corporate balance sheets. She said this large investment could take place slowly as the market matured, but she was encouraged by the examples already set by Square and Tesla. The payment company added 4,709 BTC to its balance sheet in October 2020, while the carmaker announced a $ 1.5 billion Bitcoin purchase earlier this month.
“If all companies in the United States were to pour 10% of their cash into Bitcoin, that alone would add $ 200,000 to the Bitcoin price,” she said.
Perhaps they recognize the potential opportunity in the new regulatory environment, and some companies have already applied for a Bitcoin ETF with the SEC after Biden’s inauguration. Yesterday, New York Digital Investment Group submitted the paperwork for a BTC exchange-traded fund, and on January 22, Valkyrie Digital Assets proposed that its Bitcoin trust be listed on the New York Stock Exchange.