Published Date: 16 November 2023
Categories: BTC,Crypto,ark invest,bitcoin,Bitcoin news,bitcoin price,btc,btc price,btcusd,BTCUSDT,Cathie Wood,Cathie Wood news,crypto,crypto market cap,crypto news,ethereum,ethereum news,
Cathie Wood, CEO of Ark Invest, has reiterated her bullishness on the crypto industry. In a recent interview with CNBC’s “Squawk Box,” Cathie Wood argued that the crypto industry is poised to reach a $25 trillion valuation, given a regulatory breakthrough in the US. Out of the multitude of digital assets on the market right now, Wood sees two cryptocurrencies driving much of that growth: Bitcoin and Ethereum.
Cathie Wood Predicts $25 Trillion Crypto Ecosystem
The entire crypto industry has witnessed unprecedented growth since the middle of October. According to data from Coingecko, the entire crypto market cap has increased 35% from $1.096 trillion on October 15th to a current value of $1.4828 trillion.
However, Cathie Wood is of the notion that this growth isn’t over, and the industry will reach a $25 trillion valuation in the near future. A $25 trillion market cap means the industry would have to grow a whopping 1,585% from its current level.
Cathie Wood had predicted earlier in 2021 that Bitcoin would climb more than 10 times its value in the next five years, back when the asset was still trading around $50,000. Given that Bitcoin is now selling at around $37,000, the host of Sqwauk Box, Andrew Ross Sorkin, questioned Wood as to whether or not she still stands by her prediction.
“If we have this conversation in ‘25, ‘26, are you on track?” Sorkin asked. “Yes,” Wood replied.
The CEO did mention that this growth would be feasible only if there were a regulatory green light to allow financial institutions to participate in the cryptocurrency market. She also brought up the role that Spot Bitcoin ETFs will play in the projected spike, particularly BlackRock and Coinbase’s plan to offer a spot Bitcoin ETF in the US.
“I think BlackRock and Coinbase’s partnership is going to be very important,” she said.
Bitcoin And Ethereum The Ones To Look Out For
Wood specifically called out two coins to look out for as catalysts for this growth: Bitcoin and Ethereum, the two leading assets. This isn’t surprising, as these two assets have developed better price stability than most over the years.
“Our expectation is that the crypto asset ecosystem will be dominated [by Ether and Bitcoin], and it will scale from a little more than $1 trillion today to $25 trillion in 2030 as this new world develops,” Wood explains.
The ARK Invest CEO has been a long supporter of Bitcoin. In another interview, she said she would prefer to hold Bitcoin for 10 years over cash and gold. The CEO is also no stranger to Bitcoin price predictions, as she has previously said that BTC will go to $500,000 and even reach $1.48 million in the next seven years.
According to CoinShares’ latest report, investment products tied to digital assets just reached a yearly institutional inflow of $1.14 billion. The majority of this money ($1.083 billion) has gone into Bitcoin investment products. This could signal the beginning of large-scale institutional investor participation that Wood believes will propel the crypto market cap to $25 trillion.
ARK Invest is also waiting for the SEC’s green light on its spot Ethereum ETF application. Approval of a Spot Bitcoin ETF by the SEC is expected to propel the crypto market into the next bull run.