The US Securities and Alternate Fee (SEC) would contemplate a Bitcoin exchange-traded fund (ETF) if the Bitcoin market cap hits $2 trillion
Ark Funding Administration CEO Cathie Wooden believes that it’s unlikely for the SEC to approve a Bitcoin ETF if the cryptocurrency’s market cap is under a trillion {dollars}. She made this level whereas talking at Tuesday’s ETF Tendencies Large Concepts occasion.
In response to Woods, the flood of demand must be glad for the SEC to really feel comfy with a Bitcoin ETF out there. The cryptocurrency area has been battling to get a Bitcoin ETF permitted for practically half a decade.
Regardless of a number of makes an attempt from VanEck and others, the SEC is but to approve any Bitcoin ETF. On the time of this report, the Bitcoin market cap is $8 billion shy of $600 billion. Thus, in keeping with Woods’ evaluation, the Bitcoin market must double its market cap earlier than the Securities and Alternate Fee can contemplate approving a Bitcoin ETF.
Woods admitted that she can be bullish on a Bitcoin ETF if Gary Gensler, the previous CFTC commissioner, and MIT digital forex professor, is appointed because the SEC chairman. President Joe Biden has put ahead Gensler’s identify for the function, and Woods thinks his pro-Bitcoin stance would assist the crypto area get the long-anticipated Bitcoin ETF.
If appointed, Gensler can be probably the most crypto-knowledgeable SEC chair. Nevertheless, Gensler acknowledged that whereas he’s a Bitcoin believer, he believes extra in blockchain know-how and good contracts.
Woods very bullish on BTC value
Cathie Woods additionally touched on Bitcoin’s value as she made some daring projections relating to the cryptocurrency’s value and adoption. Citing MicroStrategy for instance, Woods believes if each S&P 500 firm invested 1% of their property in Bitcoin, the cryptocurrency’s value would spike by $40,000 from its present value.
Woods additional believes that if establishments allocate between 2.5% and 6.5% of their funds in Bitcoin, then its value may spike by $200,000 to $500,000. The main cryptocurrency surged by over 400% final 12 months and began 2021 excellently after reaching a brand new all-time excessive of practically $42,000. Nevertheless, it has since misplaced momentum, and it’s at the moment buying and selling above the $32,000 mark on most exchanges.
