Despite the SEC’s continued moves to either reject or delay the approval of a Bitcoin ETF, industry players are not giving up. The latest to take a shot at a Bitcoin ETF is Ark Invest. The fund’s founder, Cathie Wood, said that they had filed for the ETF yesterday. The fund made this move in its attempt to seek more direct exposure to Bitcoin. So far, its exposure has mainly been through the Grayscale Bitcoin Trust.
Ark Invest has acknowledged that while Bitcoin is volatile, it had lots of potential for growth going into the future. According to Cathie Wood, the growing institutional uptake of Bitcoin was an indicator of its long-term growth potential. Cathie noted that if all the companies in the S&P 500 converted 1% of their cash holdings into Bitcoin, the price would easily grow by over $40k (£28,935.80). Similarly, if these companies put just 10% of their cash holdings into Bitcoin, its value could easily grow to $400k (£289,358.00).
Wood also noted that they are counting on an improvement in crypto regulations within the next four years. However, her argument is premised on the fact; the SEC now has someone who understands blockchain technology at the helm, in the person of Gary Gensler. Before joining the SEC, Gensler used to teach digital assets at MIT.
The positive expectations about Gensler are shared by many in the crypto space, including the likes of Brad Garlinghouse of Ripple. On his part, the SEC chairman is calling for better regulations aimed at protecting investors who are getting into the industry.
While being overly bullish on Bitcoin (BTC/USD), Ark Invest is aware of the volatile nature of Bitcoin. In its SEC filing, the fund noted that
