The recent approval of 11 spot Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) is seen as a potential watershed moment for cryptocurrency investing. Among these ETFs, one is backed by Ark Invest CEO and Chief Investment Officer, Cathie Wood. Her firm collaborated with 21Shares to introduce the ARK 21Shares Bitcoin ETF, signaling a significant development in the integration of cryptocurrencies into traditional investment vehicles. This move reflects a growing acceptance and interest in cryptocurrency investments within the broader financial landscape.
“We really believe this is an important moment for us to help with the democratization of bitcoin access, giving more people access,” Wood told “ETF Edge” on Monday.
The commencement of trading for the first batch of spot Bitcoin exchange-traded funds (ETFs) on Thursday marked a historic moment. The anticipation and interest from investors leading up to the approval of these groundbreaking ETFs have fueled a notable surge in Bitcoin’s value, with the cryptocurrency experiencing a more than 125% increase in the past 12 months as of Friday.
Ark Invest CEO Cathie Wood, a key player in one of the approved ETFs, highlighted the potential impact on Bitcoin prices as financial institutions gain exposure through these new instruments. Wood emphasized that even a small allocation, such as 0.2% or 0.5%, from institutions managing trillions of dollars could have a significant influence on Bitcoin’s market dynamics. The recent approval
Ophelia Snyder, President and Co-founder of 21.co, a firm deeply engaged in the cryptocurrency space and a collaborator in launching one of the ETFs, emphasized that Bitcoin represents more than just a new asset class. According to Snyder, it is a part of a broader wave of disruptive technology, bridging traditional finance with decentralized finance for streamlined crypto accessibility.
“There’s still quite a ways to go in terms of how this actually will interact both with the world at large and sort of our economic systems, as well as, quite frankly, how it will end up interacting with your portfolio,” she said.