Sister Mumu: The approval of spot Bitcoin ETF is not a news event

Author: Kevin Helms, Bitcoin.com; Compiler: Songxue, Golden Finance

Cathie Wood, CEO of Ark Investment Management, shared her views on the U.S. Securities and Exchange Commission (SEC) in an interview with CNBC on Monday ) may approve spot Bitcoin exchange-traded funds (ETFs). A decision on her firm’s joint proposal with 21shares is due on Wednesday, the first deadline for applications for a spot Bitcoin ETF this year.

As to whether institutional investors will be more willing to invest in Bitcoin with the expected approval of a spot Bitcoin ETF, Ark executives said:

We think if we and others get SEC approval, which would give the agency a green light. We've talked to quite a few of them, and now that the SEC is effectively paving the way, they're even more interested.

When asked whether her company’s spot Bitcoin ETF proposal would receive SEC approval, she responded:“We do think the likelihood of a Bitcoin ETF being approved this week is very high, The reason, as we've been saying, is that actually, the SEC, after denying, denying multiple times, started asking questions -- very good questions, very detailed questions, very technical questions -- so, I think they've asked most of the questions that need to be answered, and we're probably part of that process." Wood  also believes that the approval of a spot Bitcoin ETF may not be the same as some It was a sell-off news event as people predicted. She said: "I think a lot of people are expecting a 'news sell' and we may not have that." She emphasized: "Once you hear enough information, their positions have already happened. Who knows Well, this is a very short-term thing." The CEO of Ark Investments continued:

What we know is that over our five-year investment horizon, we believe that the inflows into this new asset class will be The flow of money, especially institutional money... will be substantial, and institutions won't need to have large allocations to Bitcoin to drive Bitcoin's growth. Things that become scarce assets are much higher.

The Ark Invest CEO went on to explain in detail why she believes the price of Bitcoin will “continue to go higher.” First, she explained that Bitcoin is digital gold, noting that gold is a $12 trillion asset. "I think Bitcoin could be as high as $800 billion right now. So we do think there's some replacement happening," she explained.

"If allocations are as low as 2.5% to 5%, then institutional flows are what we think we will end up with," she added. "You'll see 0.5%, then 1%. You'll find that's probably the biggest reason why Bitcoin is going up." Wood concluded:

Because you know,we already have about 19.5 million Bitcoins. About 15 million of them are held by holders for a long time. Their Bitcoin has not been touched for over 155 days. And we know that the total number of Bitcoins will always be only 21 million. So, this is indeedan asset that is becoming scarce.