Cathie Wood is expecting around $4 billion inflows into its Ark 21Shares Bitcoin ETF with the asset management firm talking to state pension funds and treasurers.
Soon after the approval of the Ark 21Shares Bitcoin ETF application, Cathie Wood conducted a live on Twitter Spaces to discuss the developments. Interestingly, she also confirmed her previous Bitcoin price forecasts of the BTC price surging past a million dollars.
Wood remains optimistic about Bitcoin‘s future, citing the upcoming halving and the currency’s capped supply of 21 million. In an interview with Yahoo Finance in November 2023, Wood expressed confidence in Bitcoin’s scaling potential, projecting a base case of $600,000 to $650,000 and a bullish scenario driven by increasing scarcity.
Under an optimistic scenario, the largest cryptocurrency in the world could potentially reach a value ranging between $1 million and $1.5 million per coin, according to her analysis.
Cathie Wood Predicts $4 Billion Inflows in Ark 21Shares Bitcoin ETF
In a recent statement, Cathie Wood, head of ARK Invest, revealed that her fund is actively engaging with a diverse range of institutions, including state pension funds and treasurers. The objective is to secure initial investments into the Ark21Shares Bitcoin ETF, with the ticker “ARCB.” Notably, in a departure from Ark’s usual focus on retail investors, the ARCB fund will specifically target institutional investors.
Wood acknowledged that institutions typically undergo a more extended and thorough due diligence process, suggesting that the success of ARCB may not be immediate. While she envisions a remarkable achievement with $4 billion in fund inflows, Wood did not provide a specific timeframe for this goal. The ARK Invest head expressed her optimism in an interview with Bloomberg, characterizing the achievement of a $4 billion target as “amazing success.”
Furthermore, Wood emphasized the potential impact of institutional investors on Bitcoin’s price once they gain exposure through an exchange-traded fund (ETF). This insight highlights the evolving dynamics in the cryptocurrency market as it intersects with institutional participation. She said:
“I think so many people are expecting now a ‘sell-on-the-news’ [event] that we might not have a ‘sell-on-the-news’ because once you hear that enough, the positioning has already taken place. So who knows? It’s very short-term, all we know is with our five-year investment time horizon, we think the flows into this new asset class, especially institutional flows but also retail flows – retail has led the charge, of course – that they’re going to be quite substantial, and it won’t take much of an allocation by institutions into Bitcoin to drive what is becoming a scarce asset much higher.”
Cathie Wood Slams Gary Gensler
Cathie Wood, the founder of Ark Investment Management LLC, expressed surprise at Securities and Exchange Commission Chair Gary Gensler’s statement following the approval of approximately a dozen exchange-traded funds directly holding Bitcoin.
Gensler’s statement conveyed caution, stating:
“While we approved the listing and trading of certain spot Bitcoin ETP shares today, we did not approve or endorse Bitcoin. Investors should remain cautious about the myriad risks associated with Bitcoin and products whose value is tied to crypto.”
In response, Wood, in a Bloomberg Radio interview, aired her disbelief, remarking, “He just denigrated the whole crypto space. I couldn’t believe it. This is par for the course in disruptive innovation.”
She characterized the situation as the “old DNA basically bashing the new DNA” and emphasized the widespread curiosity surrounding the crypto space. Wood sees this as part of the norm in the realm of disruptive innovation.