Ark Investment's confidence in Ethereum has "significantly increased", and future cryptocurrency investment will be "60% BTC, 40% ETH"

Cathie Wood, CEO of Ark Investment, predicts that the price of Bitcoin will increase tenfold in the next five years. She said that the growth of DeFi, NFT and the upgrade of Eth2 have greatly enhanced Ark Investment's confidence in the future of Ethereum.

According to Wood's prediction, by 2026, the value of Bitcoin will be close to half a million dollars. She said that Ark Investment's future investment in cryptocurrencies may be about 60% Bitcoin and 40% Ethereum.

Wood made the comments during a live broadcast of the SALT conference in New York on Monday.

Her BTC price thesis is based on a growing number of companies adding Bitcoin to their balance sheets and institutional investors allocating 5% of their portfolios to Bitcoin or other cryptocurrencies.

In her view, bitcoin remains the default currency in the cryptocurrency space, with El Salvador recognizing it as legal tender, a move other Central American countries say may soon follow suit.

But she said ethereum is becoming increasingly attractive as an investment due to the explosion of developer activity related to NFTs and DeFi.

“I’m very interested in the development of DeFi, which is dramatically reducing the cost of financial services infrastructure in a way that I know the traditional financial industry doesn’t appreciate at the moment,” she said.

“As we see the beginning of Ethereum’s transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS), our confidence in Ethereum has grown tremendously.”

Ark Investments manages several active exchange-traded funds focused on disruptive innovation. The firm has a large investment in Coinbase and also holds shares in the Grayscale Bitcoin Trust, and Wood has spoken frequently about her enthusiasm for Bitcoin.

Based on past experience, Wood said she doesn't think any regulator, including new SEC Chairman Gary Gensler, would want to be blamed for preventing the next big technological breakthrough.

"I'm glad he understands the virtues of cryptocurrencies, especially bitcoin — even though he's a regulator, and an absolute one at that."

Wood believes that the US SEC's threat to take legal action against Coinbase's launch of stablecoin income products highlights that the encryption ecosystem is developing faster than regulators can keep up.

In her view, Coinbase shouldn't be particularly worried. Wood highlighted how Canada’s largest bitcoin and digital asset fund manager received a favorable ruling from the Ontario Securities Commission (OSC) in October 2019 to offer a publicly traded bitcoin fund.

Cointelegraph Chinese is a blockchain news information platform, and the information provided only represents the author's personal opinion, has nothing to do with the position of the Cointelegraph Chinese platform, and does not constitute any investment and financial advice. Readers are requested to establish correct currency concepts and investment concepts, and earnestly raise risk awareness. In view of the fact that China has not yet issued policies and regulations related to digital assets, users in mainland China are advised to be cautious in digital currency investment.