The approval of Bitcoin (BTC) exchange-traded funds (ETFs) in the United States establishes the cryptocurrency as a “public good,” said ARK Invest president Tom Staudt.
According to him, the Bitcoin investment vehicle is not about “maximizing profit” but rather a way to introduce new audiences to cryptocurrencies. “I think that that’s ultimately the most important thing [...] This [Bitcoin] has become a public good that we want to make sure all investors have access to,” noted Staudt.
ARK Invest is among the asset managers approved by the U.S. Securities and Exchange Commission to launch Bitcoin ETFs, allowing investors to buy and hold BTC in portfolios just like stocks and shares of mutual funds.
Staudt also addressed Bitcoin’s attributes for portfolio composition and diversification, claiming that cryptocurrency serves both as a hedge against inflation and a risk asset that can generate additional returns.
“What we saw is that Bitcoin can be both a risk-on and a risk-off asset. It can be used for both inflation and in fears of deflation.”
In another interview with CNBC, Cathie Wood, CEO of ARK Invest, reinforced her view that Bitcoin could reach $1.5 million by 2030.
“Our bull case, and we think the probability of the bull case has increased with this SEC approval, our bull case is $1.5 million by 2030. [...] It is the first global, decentralized, digital, rules-based — critical there ‘rules-based’ — monetary system in history. It is a very, very big idea.”
Bitcoin ETFs began trading on Wall Street’s major exchanges on Jan. 11, with the Chicago Board Options Exchange, the New York Stock Exchange and the Nasdaq becoming the first to trade the products. Analyst James Seyffart previously predicted Bitcoin ETFs could attract $10 billion in their first year.
ARK has partnered with financial technology firm 21Shares to offer the Bitcoin product. Other applicants approved on Jan. 10 include Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex and Franklin Templeton.
Magazine: Should you ‘orange pill’ children? The case for Bitcoin kids books
