ARK Investment Management’s founder-CEO Cathie Wood on Tuesday shared her insights on the future of cryptocurrency ETFs.
What Happened: During an interview with The Wall Street Journal’s “Take On the Week” podcast, Wood predicted that the Securities and Exchange Commission (SEC) would likely approve spot exchange-traded funds holding only Bitcoin BTC/USD and Ethereum ETH/USD. “We’d be surprised to see anything but bitcoin and ether being approved by the SEC,” Wood stated.
ARK has joined forces with crypto asset manager 21Shares, aiming to launch one of the first U.S.-based ETFs holding ETH, the second-largest cryptocurrency and native token of the Ethereum blockchain. The partnership follows the approval of their spot Bitcoin ETF, one among the first set of 10 green-lit by regulators in the United States.
The SEC, nevertheless, has yet to provide a clear stance on the classification of ETH, despite SEC Chair Gary Gensler referring to BTC as a commodity.
Additionally, asset management heavyweight Franklin Templeton on Monday filed for a spot in Ethereum ETFs reported by Reuters.
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Why It Matters: Last week, Wood noted the shift from gold to bitcoin. She said, “Relative to gold, Bitcoin has been rising. There’s now a substitution into Bitcoin and we think that is going to continue now that there is a less friction-filled way to access Bitcoin.”
On the launch of a spot Bitcoin ETF, Wood said she wasn’t surprised by the immediate price correction but stressed the long-term holding patterns by most Bitcoin owners. She noted that “15 million of the 19.5 million Bitcoin currently in circulation haven’t moved in 155 days,” signaling a stable, long-term view among cryptocurrency investors.
Price Action: At the time of writing, BTC was trading at $49,419, a 1.12% decline over the past 24 hours, as reported by Benzinga Pro.
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Image made via photos on Flickr by WEF and Shutterstock
Image and article originally from www.benzinga.com. Read the original article here.