Why is Cathie Wood so excited about Bitcoin?

Highlights

  • Ark Invest CEO Cathie Wood said Bitcoin may touch US $500,000 in the next five years.
  • Wood said that Ark Invest sees a lot of potential in Ether and expects a 60:40 bitcoin-to-ether crypto portfolio ratio.

The leading cryptocurrency in the world, Bitcoin may be having a good period of late, but that doesn’t deter Ark Invest CEO Cathie Wood to bet big on the cryptocurrency. On Monday, Wood said the Bitcoin will rise tenfold and may reach US $500,000 in the next five years.

Speaking at the SALT Conference in New York, Wood observed that the Bitcoin is well on its way to become the new financial yardstick. Wood, who is exposed to the ups and downs of the crypto market, believes that with more and more countries are looking to explore the leading cryptocurrency as a legal tender. It will explode in new areas, and this would result in the prices reaching new highs.

Wood expressed her love for Bitcoin even during the Crypto Council for Innovation (CCI) event, where she along with Jack Dorsey, CEO of Twitter, said that as the new wave of stakeholders started embracing the Bitcoin as the mode of payment system, they have a greater responsibility to sustain the network.

Wood believes that if the companies continue to diversify their balance sheets one could the potentially see an increase in the institutional investors flocking in.

The Bitcoin prices on Tuesday saw slight improvement with it trading at US $46,478.25 with a 24-hour trading volume of US $43,55,33,00,218. BTC was up 3.82% in the last 24 hours with a live market cap of US $8,74,52,19,68,641 as per CoinMarketCap.

Ether going strong

Ether has seen a tremendous spike in interest as it has been up by 350% so far in 2021. Wood said that firm sees the potential in Ether and expects a 60:40 bitcoin-to-ether crypto portfolio ratio going forward. Ether which has seen an exponential rise largely due to the non-fungible token (NFTs).

Terming it as the most explosive thing after Internet, Wood said NFT will, in the coming future will grow exponentially. With Ethereum upgrade to 2.0 seeing an overhaul, the users stand to gain the right to verify their transactions and earn coins in the process.

It is this precise reason, why Wood is so aggressive about Ether and insisted that confidence in ether has gone up as the transition arrives.

Canada’s Bitcoin ETF

ARK Investments has filed an application to launch Bitcoin ETFs in Canada. According to the filing, Ark Invest will offer Bitcoin ETF at a significant premium or discount to NAV. The move comes following delays and rejection by the US Securities and Exchange Commission, prompting the company to look at newer markets.

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