The CEO and CIO of ARK Investment Management, Cathie Wood, has expressed a change in her opinion regarding the U.S. Securities and Exchange Commission’s (SEC) approval of a Bitcoin exchange-traded fund (ETF). Contrary to ARK’s anticipation, Wood suggests SEC could approve multiple spot-Bitcoin ETFs simultaneously.
ARK Investment Management became a leading contender for a spot-Bitcoin ETF launch with its early SEC application. Wood’s recent statement suggests SEC could approve multiple applicants concurrently, potentially equalizing the ETF product landscape. A $50 billion increase in demand may result from such an action.
The U.S. lacks a spot Bitcoin ETF, with regulators cautious about approving such products.
Cathie Wood Shifting Perspective and Its Ripple Effects
Major financial institutions have all submitted applications for spot-Bitcoin ETFs similar to ARK’s proposed product, including BlackRock Inc., Fidelity, WisdomTree, VanEck, and Invesco. Due to the commonalities between these potential funds, the issuer’s marketing skills are anticipated to be crucial to their success. Wood suggests that the outcome of Grayscale Investments LLC’s case against the SEC might have an impact on the regulator’s choice. In reaction to the SEC rejecting its request to turn the $18 billion Grayscale Bitcoin Trust into an ETF, Grayscale filed a lawsuit.
SEC might approve numerous spot Bitcoin funds simultaneously, supported by Bloomberg Intelligence’s ETF analyst James Seyffart. If Grayscale wins its legal dispute with the SEC, this strategy might acquire more traction.
The regulatory landscape shapes the Bitcoin ETF evolution, an ongoing and dynamic narrative in flux. Wood’s revised view underscores complex dynamics; multiple ETF approvals could reshape bitcoin investment product market.