Ark Invest Founder Cathie Wood is among the big believers that the price of Bitcoin BTC/USD will rise. Ark Invest is among the companies that have filed to launch a Bitcoin ETF, an issue that awaits SEC approval.
In an interview with Benzinga CEO Jason Raznick, Wood shared her take on why Bitcoin will rise in price in the future. Watch for Raznick's exclusive interview with Wood that goes live at 2 p.m. ET Wednesday on "The Raz Report."
Don't miss out on other market-moving cryptocurrency predictions at Benzinga's in-person Future of Digital Assets event Nov. 14, 2023 in New York City. Secure early bird discounted tickets now!
Wood On Bitcoin Demand: Wood said she can’t comment on the filing for Ark’s Bitcoin ETF, but had plenty to say about what an approval of ETFs could mean in terms of demand for Bitcoin, the leading cryptocurrency.
“I really do believe the SEC is going to lose the Grayscale case and that’s going to happen pretty soon,” Wood said.
The SEC could respond to the case by turning around and approving several Bitcoin ETFs, she said.
“It could happen. It could happen quickly.”
The approval of Bitcoin ETFs could lead to increased demand. As many investors are aware, Bitcoin has a fixed supply of 21 million BTC, with 19 million already mined.
“If institutions want to move in, that’s going to be a lot of incremental demand for not that much more incremental supply.”
Wood said institutions might not have a choice but to send the price of Bitcoin higher for ETFs and for holding BTC.
“The only way to do that is to bid the price up.”
Hear more from crypto experts at Benzinga’s 2023 Future of Digital Assets Nov. 14 in New York City.
Related Link: How To Buy Bitcoin
Wood's Bitcoin Price Target: Over the years, Wood and Ark Invest have predicted that Bitcoin could hit six figures or even $1 million by the year 2030.
Wood stood behind the belief that Bitcoin could hit $1 million over the next five to seven years during her exclusive Benzinga interview.
“[It's the] first global, private, digital, rules-based monetary system the world has ever known. That’s a big idea,” Wood said.
Right now, the market capitalization of all cryptocurrency is around $1.05 trillion.
“We think the total crypto asset market in 2030 will be valued at roughly $25 trillion,” Wood told Raznick.
Wood said Bitcoin will represent more than half of the $25-trillion crypto market valuation in the future.
The Ark Invest founder stopped short of giving a price target for Bitcoin in 2024, saying Ark looks more at a five-to-seven-year outlook for predictions.
Wood said the base case for Bitcoin in 2030 is around $650,000, with a bull case that is roughly double that.
In the 2023 Big Ideas report from Ark, the ETF company laid out price targets of $682,000 for the base case and $1.48 million for the bull case in 2030.
Why It’s Important: Investing in Bitcoin and crypto-related companies remains a key priority for Wood.
Coinbase Global Inc COIN is a top holding in the Ark Innovation ETF ARKK, Ark Next Generation Internet ETF ARKW and the Ark Fintech Innovation ARKF. Coinbase is a top three holding in each of the three ETFs and represents between 7.6% and 10.1% of assets in each of the funds.
Wood called Coinbase’s partnership with BlackRock Inc BLK an important one for the cryptocurrency sector.
“That was a very big deal,” Wood said.
The Grayscale Bitcoin Trust GBTC is also a top holding as the third-largest position in the Ark Next Generation Internet ETF representing 7.3% of assets in the fund.
Wood's Bitcoin bull case follows several recent takes by financial experts predicting a future six-figure or more price for the leading cryptocurrency.
FS Insight Head of Research Tom Lee recently shared a case for Bitcoin to hit $200,000 with the approval of Bitcoin ETFs. While some laugh at the price targets for Bitcoin by Wood and Ark Invest, Lee said that Wood is not off base with the projections.
Morgan Creek Capital Management Founder Mark Yusko recently shared a price target of $300,000 for Bitcoin by the 2028 and made a case for $100,000 in 2024.
Want to hear more from Mark Yusko and other crypto experts on Bitcoin and where it’s headed in 2024 and beyond? Join Benzinga’s 2023 Future of Digital Assets where he will be speaking.
Photo: Benzinga illustration.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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