ARK Invest CEO Cathie Wood has fueled speculation with its recent prediction that the U.S. Securities and Exchange Commission (SEC) could potentially grant approval to multiple Spot Bitcoin exchange-traded funds (ETFs) at the same time.
Deviation from the norm for Spot Bitcoin ETFs
In a recent interview With Bloomberg on Aug. 7, Cathie Wood shared her insight that the SEC could opt for a breakthrough strategy by approving more than one Bitcoin ETF at a time.
Wood’s claim, “I think if the SEC is going to approve a Bitcoin ETF, it will approve more than one at a time,” has attracted attention, especially given her previous assurances that her company would lead in gaining approval for a spot Bitcoin ETF.
Wood’s projection deviates from the conventional practice of sequential ETF approvals. By envisioning a concurrent approval scenario, she introduces a new approach that could streamline the regulatory process. This potential shift is aimed at fostering a balanced and inclusive investment landscape that will meet an expected demand of more than $50 billion.
Implications for the cryptocurrency industry
Historically, the SEC has not approved spot Bitcoin ETFs, while allowing ETFs linked to crypto futures to list. Wood’s forward-looking statement comes amid a wave of filings from major players such as BlackRock Inc, Fidelity, WisdomTree, VanEck and Invesco, all vying for the approval of similar crypto ETFs to ARK.
Wood’s prediction also highlights the importance of strategic marketing. Given the expected similarity between different funds, Wood suggests that the marketing power of issuers will be crucial in differentiating them as a race for dominance is expected. This insight underscores the competitive advantage applicants seek in a rapidly evolving industry.
BTC price recovers as positive sentiment grows | Source: BTCUSD on Tradingview.com
As Cathie Wood’s prediction reverberates in the financial world, industry observers await the SEC’s response. With a major deadline for ARK’s application set for August 13, Wood suggested, amid speculation about possible delays, that the deadline could pass and be extended, but then the date will be eagerly awaited.
Although Ark Invest filed its application for spot Bitcoin ETFs on May 15, ahead of others like BlackRock who submitted its application on June 15, this was seen as a race for winners or losers, according to Cathie’s. “first in line” sense to favor Ark Invest. However, her revised view makes the race to Spot Bitcoin ETFs and the SEC ruling more interesting.
Accentuating the intersection of progressive and regulatory dynamics, this innovative forecast highlights an era in which digital assets are increasingly integrated into traditional financial frameworks, particularly the recent rise of ETFs.
Wood is known for her unwavering belief in disruptive innovations and the companies behind it with her investment management firm ARK Invest featuring numerous high-quality stocks such as CoinBase Global (COIN), Tesla (TSL), and Block (SQ), among others.
Wood also reportedly bought $100,000 worth of Bitcoin years ago when it was selling for $250 each and the CEO revealed that she has never sold a single BTC.
Featured image from MarketWatch, chart from Tradingview.com