Ark Invest to split ‘60% Bitcoin, 40% Ether’ as confidence in ETH grows ‘dramatically’

Cathie Wood, the CEO of Ark Investment, has doubled down on her prediction that the price of Bitcoin will grow by tenfold in the next five years, and said the growth of DeFi, NFTs and the Eth2 upgrade has massively increased Ark’s confidence in Ether’s future.

Wood’s prediction would value Bitcoin at almost $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 made the comments Monday, during a live stream at the SALT Conference in New York.

Her BTC price thesis is based on more companies adding Bitcoin to their balance sheets and institutional investors allocating around 5% of their portfolios towards Bitcoin or other cryptos.

In her view, Bitcoin still remains the default currency of the crypto space with El Salvador deeming it legal tender and other countries of Central America signalling they may follow soon.

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 several actively exchange-traded funds with a focus on disruptive innovation. It has significant investments in Coinbase and shares in the Grayscale Bitcoin Trust, Wood has spoken frequently about her enthusiasm for Bitcoin.

READ ALSO:  Fetch.ai launches NFT platform for AI-generated art

Related: Bitcoin bull run sparks $180K BTC price prediction ahead of institutional ‘fireworks’

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 legal action against Coinbase regarding the launch of a stablecoin yield product highlights that the crypto ecosystem is developing faster than the regulators have been able keep up with.

In her view, Coinbase shouldn’t be especially worried. Wood highlighted how in October 2019 Canada’s largest Bitcoin and digital asset fund manager received a favorable ruling from the Ontario Securities Commission (OSC) to offer a publicly-traded Bitcoin fund.

Oladimeji AbubakarSeptember 15, 2021

previous article

Bitcoin billionaires back ‘moonshot’ scheme to resurrect woolly mammoths

Oladimeji Abubakar

the authorOladimeji Abubakar

Hi, I’m Oladimeji Abubakar, a young Nigerian blogger and writer.
I’ve special interest in making money online just like many other people and this is why I chose the review niche where I’d get to show people the websites to join and the ones not to. I hope my reviews helps😀.

All posts byOladimeji Abubakar

Leave a Reply

Social connect:

Write your comment here

Name

Email

Save my name, email, and website in this browser for the next time I comment.

You Might Also Like

Crypto

Bitcoin billionaires back ‘moonshot’ scheme to resurrect woolly mammoths

Oladimeji AbubakarNo comment

Crypto

PrimeDAO raises $2M to build cooperative platform for DAOs

Oladimeji AbubakarNo comment

Posted on