Cathie Wood: SEC Knowledge Has Improved, Institutions Will Be the Biggest Contributors to Bitcoin Price

ARK Invest founder Cathie Wood was interviewed by CNBC, expressing optimism about the approval of the ARK 21Shares ETF in January. She also mentioned the SEC's concerns about the risks associated with physical redemption and believes that Bitcoin will be recognized as legal tender by more countries, partially replacing gold within the next five years.

Cathie Wood: SEC's "Knowledge Content" Has Improved

When asked about the progress of the ARK 21Shares ETF, Cathie Wood stated that after multiple rejections and discussions between both parties, the SEC's depth of knowledge and understanding of the issues have improved.

As a result, she believes that approval before January 10 next year is very likely and added that she hopes to pass by then.

SEC Concerned About Risks of Physical Redemption

Cathie Wood revealed that the Ark and 21Shares Bitcoin spot ETF, as reported by the media, will indeed be based on cash creation and redemption. She stated:

A few people at the SEC are concerned that physical creation will force traditional banks to deal with cryptocurrencies. We are also unsure if this will happen. This is indeed a very technical issue, but I hope this issue has been resolved.

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Institutions are the Biggest Contributors to Coin Prices

Consistent with Ark's argument, if institutions allocate 0.1% of their assets to Bitcoin, it can have a significant impact on the price.

Cathie Wood emphasized that institutions, especially, consider regulatory and tax issues, which may have been the reason they have not invested in Bitcoin before. If Ark's idea is correct, the Bitcoin spot ETF will become the best way for institutions to access Bitcoin.

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Bitcoin Will Be Considered Legal Tender by More Countries and Partially Replace Gold Within Five Years

Cathie Wood pointed out that Bitcoin will continue its performance next year. At the beginning of the year, Bitcoin achieved a 50% increase even in the midst of banking crises. This is because Bitcoin has no counterparty risk, is decentralized, and transparent on the chain, allowing investors to track abnormal activities on the chain.

She emphasized that Ark's forecasts are often long-term, over five years, and they do believe that Bitcoin will indeed replace physical gold for some people.

In addition, she believes that more countries, apart from El Salvador and Argentina, will support Bitcoin:

We are not surprised that more emerging countries are considering Bitcoin as legal tender. This will be a very large market.