Cathie Wood has expressed high confidence that the SEC will approve a spot Bitcoin ETF in January 2024 after having constructive dialogues with the filers. She also revealed that the SEC has asked detailed and technical questions, indicating its interest and clarity on the matter.
The US investor and chief executive officer of ARK Invest has displayed high confidence in the prospects of a spot Bitcoin ETF becoming a reality soon in the United States. She also shed light on the attitude of the Securities and Exchange Commission (SEC) on gaining clarity on the nitty-gritty of the ETF filings.
Cathie Wood praises the SEC’s engagement with the filers
Wood said that in the context of the SEC previously denying spot ETF approvals, the agency officials have asked thoughtful, detailed, and technical questions in the recent meetings with the filers. She added that the Commission had asked several follow-up questions in the discussions and not just a set of questions, which is a very encouraging move.
Wood welcomed the extensive discussions with ETF seekers, stating that the companies do not want the SEC to have any uncertainties.
“We don’t want the spot Bitcoin ETF to get the green light if there are any uncertainties that the SEC may have. We are answering the SEC’s queries one by one, and the dialogues are very positive,”
Earlier, Coinscreed reported that Blackrock and Grayscale were among those companies that had the most number of meetings with SEC officials over the spot ETF filings.
Blackrock, the world’s largest asset manager, has recently adopted the cash creation model for its spot Bitcoin ETF, which the SEC prefers over the in-kind model. Grayscale, the largest digital asset manager, has also announced its intention to convert its flagship product, the Grayscale Bitcoin Trust (GBTC), into a spot Bitcoin ETF.
Cathie Wood predicts spot Bitcoin ETF approval in January 2024
Speaking to Yahoo Finance, Wood explained that the outlook for a spot Bitcoin ETF approval is very bright, expressing confidence of the approval happening in January 2024. This rules out the possibility of an early approval as soon as before the end of 2024, owing to the ongoing deliberations.
Wood said that the approval of the spot ETFs would give institutional investors the green light to participate in the crypto market, as they would be able to buy and sell Bitcoin directly, without intermediaries or premiums. She also said that the spot ETFs would be more efficient and transparent than the futures-based ETFs, which have been approved by the SEC in October 2023 but have faced criticism for their high fees, contango risk, and tracking error.
Wood is a well-known advocate and investor of Bitcoin and other cryptocurrencies and has been vocal about her bullish views on the future of the crypto industry. She has also invested heavily in crypto-related companies, such as Coinbase, Square, and Tesla, which have exposure to Bitcoin. Cathie Wood has also revealed that she holds a substantial amount of Bitcoin and Ethereum in her personal portfolio and has predicted that Bitcoin will reach $500,000 in the next five years.
Spot Bitcoin ETF is a matter of when, not if
Cathie Wood’s confidence and optimism on the spot Bitcoin ETF approval are positive signs for the crypto community, as they indicate that the SEC is taking the matter seriously and is willing to engage with the filers constructively.
A spot Bitcoin ETF would be a game-changer for the crypto market, as it would attract more institutional investors, increase liquidity and adoption, and reduce volatility and manipulation.
While the approval is not guaranteed, and there are still some hurdles and uncertainties to overcome, it seems that it is only a matter of when, not if, the spot Bitcoin ETF will become a reality in the US.
