Ark Investment Management’s CEO, Cathie Woods, believes that once the US Securities and Exchange Commission (SEC) approves a spot-bitcoin ETF, it will see widespread institutional investment.
She explained that only 0.1% to 0.2% needs to be allocated by the trillions of institutional assets in the market to an ETF, as it is one of the most efficient ways of getting Bitcoin exposure.
She added that if and when this happens, it would have a significant impact on the price of the pioneer cryptocurrency.
The change
On Tuesday, Cathie Woods spoke to Yahoo Finance and shared her perspective regarding spot bitcoin ETFs.
Her firm is one of the many that are seeking approval from the US securities regulator to introduce a spot bitcoin ETF.
January 10th is the deadline for the SEC to decide whether to accept or deny the application.
Talking about the attitude of the SEC regarding the investment product, the chief executive said that something had changed in the last six weeks.
She said that the SEC had denied them several times and had not made any contact, but now they had gotten questions from the regulator that were technical, detailed, and thoughtful.
She added that this was a positive sign and they had not gotten just one set of questions, but there had also been follow-up questions, which was also good.
The perspective
The Ark Invest executive said that they had met with many SEC’s research people and they were very knowledgeable and thoughtful, which was reassuring.
She added that they were answering the uncertainties the SEC had and the communication is positive, which means spot Bitcoin ETFs have a bright outlook.
She also expressed that she believes that multiple ETFs will be approved by the SEC in January. She clarified that it was the actions of the SEC that had led to that conclusion.
There are a total of 13 spot bitcoin ETF applications that the SEC is currently considering. The regulator had had meetings with several issuers recently to discuss their applications.
These include Grayscale Investments, BlackRock, Ark Invest, and Fidelity. They have reportedly been given the end of this week to file amendments to their applications to be considered for the decision.
The impact
Woods also talked about the impact on the price of Bitcoin and she shared that she expected it to rise after the deadline on January 10th, as it had done recently.
She stated that it was the anticipation of a spot bitcoin ETF that had driven up the price of Bitcoin in recent weeks.
She added that those who had been enjoying some nice profits of late would sell. But, she also asserted that there would be a significant move in the price of Bitcoin once a decision is made.
If a spot Bitcoin ETF does get approved, it would allow institutional investors to invest and this would likely see more capital flood the crypto market, leading to higher demand and higher prices.