Cathie Wood, the founder and CEO of ARK Invest, has shared her bullish outlook on the future of cryptocurrencies in a recent interview with CNBC.
Wood believes that the crypto market will grow exponentially in the next seven years, reaching a staggering valuation of $25 trillion by 2030. This would represent a more than 2,100% increase from the current market cap of around $1.13 trillion.
One of the main drivers of this growth, according to Wood, is the increasing demand from institutional investors, who will be attracted by the scarcity and innovation of Bitcoin and other digital assets. Wood expects that the approval of a Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) will be a catalyst for this trend, as it will provide easier access and exposure to the leading cryptocurrency.
Wood also cites the Grayscale case as a potential game-changer for the crypto industry. Grayscale, the largest digital asset manager, has been challenging the SEC to convert its Bitcoin Trust into an ETF. Wood thinks that the SEC will lose this case and will have to reconsider its stance on Bitcoin ETFs.
She is confident that Bitcoin will remain the dominant force in the crypto space, accounting for more than half of the $25 trillion market cap in 2030. She estimates that Bitcoin’s price will reach around $650,000 in her base case scenario, and up to $1.3 million in her more optimistic scenario.