During the interview, Sorkin asked an interesting question, what Bitcoin would be worth in five years.
“If we’re right and companies continue to diversify their cash into something like Bitcoin, and institutional investors start allocating 5% of their funds in Bitcoin […] we believe the price will be ten-fold what it is today. Instead of $45,000, over $500,000.”
Another interesting question Sorkin asked was: if you could only own one cryptocurrency what would it be? To which Wood responded:
“That is becoming a harder and harder question to answer. I think I’d default still to Bitcoin because countries are now deeming it legal tender and we haven’t even put that into our thinking.”
The interview follows an interesting week in crypto during which El Salvador became the First Nation to recognize Bitcoin as legal tender, and Wood’s Ark Invest filed for one of its funds to invest in Canadian Bitcoin ETFs.
In recent filing with SEC, the $5.7 billion ARK Next Generation Internet ETF (ARKW) changed its prospectus to include exposure to Bitcoin via Canadian ETFs.
The U.S. market is still awaiting the SEC’s approval of a Bitcoin ETF. A series of funds have recently filed with the SEC for Bitcoin Futures ETFs, including VanEck, Invesco, Goldman Sachs, Grayscale Bitcoin Trust and Viridi Funds.
The uptick in ETF registrations by large firms could be interpreted as growing demand for exposure to Bitcoin through traditional investment vehicles in the United States.
According to Bloomberg, ARKW already enjoys about a 5.5% exposure to Grayscale Bitcoin Trust. GBTC is one of the fastest paths to access Bitcoin via fund in the U.S. Although the sixth month forced lockup period before shares can be redeemed causes the trust to divorce from the Bitcoin price and as a result it normally trades at a major premium or a discount, which explains why ARK would seek exposure through other Canadian ETFs.
Source: Ark Invest's Cathie Wood Predicts BTC To Be Worth $500,000 in Five Years – Fintechs.fi