Cathie Wood, CEO of ARK Invest, has sparked speculation with her recent prediction that the US Securities and Exchange Commission (SEC) could potentially grant approval for multiple exchange-traded spot Bitcoin funds (ETFs) simultaneously.
Deviation from the norm for spot Bitcoin ETFs
In a recent interview with Bloomberg on August 7th, Cathie Wood shared her insight that the SEC could opt for a groundbreaking strategy by approving more than one Bitcoin ETF at the same time.
Wood’s claim, “I think that if the SEC wants to approve a Bitcoin ETF, it will approve more than one at once,” has attracted attention, particularly in light of her previous assurance that her company would be at the forefront of securing approval for a spot Bitcoin ETF.
Wood’s prediction diverges from the conventional practice of sequential ETF approvals. By envisioning a simultaneous approval scenario, she introduces a novel approach that could streamline the regulatory process. This potential shift aims to foster a balanced and inclusive investment landscape that can accommodate an expected demand of over $50 billion.
Impact on the cryptocurrency industry
Historically, the SEC has not granted approval for spot Bitcoin ETFs, but it does allow for the listing of ETFs tied to crypto futures. Wood’s forward-looking statement comes amidst a flood of applications from major players such as BlackRock Inc, Fidelity, WisdomTree, VanEck, and Invesco, all vying for approval of similar crypto ETFs like ARK.
Wood’s prediction also underscores the importance of strategic marketing. With the expected similarities among various funds, Wood assumes that the marketing capabilities of issuers will be crucial for differentiation, as a race for dominance is expected. This insight highlights the competitive advantage that applicants strive for in a rapidly evolving sector.
“While Cathie Wood’s prediction resonates in the financial world, industry observers are awaiting the SEC’s response. With an important deadline for ARK’s application looming on August 13th and speculation of possible delays, Wood suggested that the deadline could pass and be extended, but then the industry will eagerly await the decision.”
Although Ark Invest submitted its spot Bitcoin ETF application on May 15th, earlier than others like BlackRock, which submitted its application on June 15th, this had been seen as a race of “first in the line” phrase in favor of Ark Invest. However, Wood’s revised view makes the race for spot Bitcoin ETFs and the SEC’s decision more interesting.
This innovative prediction emphasizes the intersection between forward-thinking and regulatory dynamics, highlighting an era in which digital assets are increasingly integrated into traditional financial frameworks, particularly the recent push for ETFs.
Wood is known for her unwavering belief in disruptive innovations and the companies behind them. Her investment management firm, ARK Invest, holds numerous high-profile stocks including Coinbase Global (COIN), Tesla (TSLA), and Square (SQ).
Reportedly, Wood also bought Bitcoin worth $100,000 years ago when it was selling for $250 per coin, and the CEO has stated that she has never sold a single BTC.
Selected image from MarketWatch, chart from Tradingview.com