Ark Invest to split ‘60% Bitcoin, 40% Ether’ as confidence in ETH grows ‘dramatically’
Ark Investment CEO believes Ethereum’s development is promising and Bitcoin’s price can still rise as additional firms and establishments adopt the cryptocurrency.
Cathie Wood, the CEO of Ark Investment, has doubled down on her prediction that the value of Bitcoin can grow by tenfold within the next 5 years, and aforementioned the expansion of DeFi, NFTs and therefore the Eth2 upgrade has massively exaggerated Ark’s confidence in Ether’s future.
Wood’s prediction would price Bitcoin at nearly $500,000 by 2026.She said that Ark Investment’s future exposure to crypto was likely to be around 60% Bitcoin and 40% Ethereum.
Wood created the comments Monday, throughout a live stream at the SALT Conference in New York.
Her BTC value thesis relies on additional firms adding Bitcoin to their balance sheets and institutional investors allocating around five-hitter of their portfolios towards Bitcoin or alternative cryptos.
In her view, Bitcoin still remains the default currency of the crypto house with El Salvador deeming it medium of exchange and alternative countries of Central America signalling they’ll follow shortly.
But she said Ethereum is becoming more and more attractive as an investment thanks to the explosion in developer activity related to NFTs and DeFi.
“I’m fascinated with what’s going on in DeFi, which is collapsing the cost of the infrastructure for financial services in a way that I know that the traditional financial industry does not appreciate right now,” she said.
“Our confidence in Ethereum has gone up dramatically as we have seen the beginning of the transition from Proof-of-Work to Proof-of-Stake.”
Ark Investment manages many actively exchange-traded funds with a spotlight on troubled innovation. it’s important investments in Coinbase and shares in the Grayscale Bitcoin Trust, Wood has spoken often regarding her enthusiasm for Bitcoin.
Wood said that from past experience she believed no regulator, including new SEC chair Gary Gensler, would want to be blamed for preventing the next big tech breakthrough.
“I’m very happy he understands crypto and the merits of Bitcoin in particular — he is a regulator though and he is a hardcore regulator.”
Wood believes the SEC’s threats to pursue action against Coinbase concerning the launch of a stablecoin yield product highlights that the crypto system is developing quicker than the regulators have been able keep up with.
In her opinion, Coinbase should not be particularly upset. Wood highlighted however in Oct 2019 Canada’s largest Bitcoin and digital plus fund manager received a good ruling from the Ontario Securities Commission (OSC) to supply a publicly-traded Bitcoin fund.