Ark Investment Management CEO Cathie Wood expects the price of bitcoin to be more than $500,000 in five years’ time.
Also, She expresses her view on cryptocurrency regulation and Coinbase’s trouble with the U.S. Securities and Exchange Commission (SEC).
Cathie Wood’s Ark Invest Predicts $500K Bitcoin
In an interview at the SALT conference on Monday, Cathie Wood, the CEO of Ark Investment Management (Ark Invest), discussed bitcoin and crypto regulation. Wood is also the firm’s founder and CIO.
She was asked what bitcoin will be worth five years from now.
“If we are right and companies continue to diversify their cash into something like bitcoin, institutional investors start allocating 5% of their funds into … bitcoin, or other crypto,” then:
We believe that the price will be tenfold of where it is today, so instead of $45,000, [it would be] over $500,000.
Wood also left a comment on cryptocurrency regulation.
Cathie Expressions ON SEC Regulations
As regarding her meeting with state, local, and federal regulators,
She expressed “Our working assumption from the beginning was that … no regulator wanted to be blamed for preventing the next big technology breakthrough to happen in the U.S.”
She then added that she is “really happy” that the chairman of the SEC, Gary Gensler, “understands crypto and understands the merits of bitcoin in particular.”
However, she noted, “He is a regulator though and he’s a hardcore regulator.”
The CEO of Ark Invest said somethings concerning the cryptocurrency exchange Coinbase’s trouble with the SEC regarding its lending product. She said that she “was shocked” to hear that Coinbase received a Wells Notice.
“Are you kidding? They haven’t even released the product. What is this?” she lamented.
Coinbase revealed last week that it received a Wells Notice from the SEC. However, the exchange said that it does not know what problem the SEC has with its Lend product.
“We don’t know why we got no explanation from the SEC,” the exchange revealed.
“I think what that Wells Notice is doing, it’s a call out by regulators saying we got to discuss this stuff because this is happening very quickly and I think we are going to bring courts into the system,” Wood expressed, adding:
This happened in Canada. A company called 3iq sued the regulator there and won in court so they were able to issue bitcoin ETFs [exchange-traded funds], and closed in funds and ether as well.
She concluded “So, I’m beginning to think that Coinbase doesn’t mind it at all and if you saw the stock reaction, it hardly budged.”
When asked which cryptocurrency she would invest in if she’s left with the option to pick one.
Wood said she would invest in bitcoin “because countries are now deeming it legal tender.”
The Ark Invest executive is referring to El Salvador as the country has legalized Bitcoin Law as a legal tender alongside the US dollar effective from sept. 7.