Bitcoin ETF approval more likely under new SEC leadership, says Ark Invest CEO

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Ark Investment Management Founder and CEO Cathie Wood said the likelihood of U.S. regulators approving a Bitcoin exchange-traded fund has increased under the Biden administration.

In an interview with CNBC’s Bob Pisani today, Wood said there were two signs that the Securities and Exchange Commission might be more open to giving the green light to a Bitcoin exchange-traded fund (BTC), or ETF. . Under previous administrations, the regulator did not approve any Bitcoin ETFs, much to the industry’s chagrin.

More specifically, the CEO of Ark Invest said she was encouraged by the choice of Joe Biden for the president of the SEC, Gary Gensler. Gensler is known as someone who understands the technology behind digital assets and BTC itself. Additionally, Wood saw FinHub executive Valerie Szczepanik, known as “Crypto Czar,” come straight to the next president as a bullish sign.

“I think the probability of an ETF has increased,” said Wood. “[Gensler] understands the technology, and I think he understands the currency itself. […] I think we now have people involved who really understand the space. “

Wood acknowledged that institutional interest in the crypto space had recently increased, but said she did not expect it to be driven by “widespread substitution of Bitcoin for cash on corporate balance sheets. “. She said this large-scale investment could happen slowly as the market matures, but she was encouraged by the examples already given by Square and Tesla. The payments company added 4,709 BTC to its balance sheet in October 2020, while the automaker announced a $ 1.5 billion Bitcoin purchase earlier this month.

“If all businesses in the United States put 10% of their money into Bitcoin, that alone would add $ 200,000 to the price of Bitcoin,” she said.

Perhaps acknowledging the potential opportunity in the new regulatory environment, some companies have already applied for a Bitcoin ETF with the SEC after Biden’s inauguration. Yesterday, the New York Digital Investment Group filed the documents for a BTC exchange-traded fund, and on January 22, Valkyrie Digital Assets offered to list its Bitcoin trust on the New York Stock Exchange.