Ark Investment Management founder and CEO Cathie Wood said the likelihood that U.S. regulators would approve a Bitcoin exchange-traded fund has increased under the Biden administration.
In an interview with CNBC’s Bob Pisani today, Wood said there are two signs that the Securities and Exchange Commission may be more open to giving a green light to a fund traded on the Bitcoin exchange (BTC), or ETF. In previous administrations, the regulator has not approved Bitcoin ETFs, much to the industry’s chagrin.
Specifically, Ark Invest’s CEO said she was encouraged by the choice of Joe Biden for SEC chairman Gary Gensler. Gensler is known as someone who understands the underlying technology of digital assets and BTC itself. In addition, Wood saw FinHub leader Valerie Szczepanik, known as the “Czar Cryptography”, reporting directly to the next chair as a bullish signal.
“I think the probability of an ETF has increased,” said Wood. “[Gensler] understands the technology, and I think he understands the currency itself. […] I think we now have individuals involved who really understand space. “
Wood acknowledged that institutional interest in the crypto space has recently increased, but said he did not expect it to be driven by “widespread replacement of Bitcoin for money on corporate balance sheets”. She said that this large-scale investment could happen slowly as the market matures, but she was encouraged by the examples already given by Square and Tesla. The payment company added 4,709 BTC to its balance sheet in October 2020, while the automaker announced a $ 1.5 billion Bitcoin purchase earlier this month.
“If all corporations in the United States put 10% of their money into Bitcoin, that alone would add $ 200,000 to the price of Bitcoin,” she said.
Perhaps recognizing the potential opportunity in the new regulatory environment, some companies have already requested a Bitcoin ETF with the SEC following Biden’s tenure. Yesterday, the New York Digital Investment Group filed a paper for a fund traded on a BTC exchange, and on January 22, Valkyrie Digital Assets proposed listing its Bitcoin fund on the New York Stock Exchange.