Anticipations are rising concerning the potential approval of a spot Bitcoin ETF, but Cathie Wood, the CEO of ARK Invest, foresees a possible negative impact on BTC prices in the short term.
According to Wood, some investors might engage in "selling on the news" behavior once the approval of a spot Bitcoin ETF by U.S. securities regulators is confirmed. She elaborated that this tendency occurs when investors, having already gained significant profits, decide to sell their positions after an anticipated event has taken place. Wood shared these insights during an interview with Yahoo Finance on December 26, emphasizing the possibility of profit-taking based on expectations surrounding the approval of a spot Bitcoin ETF.
Despite acknowledging the potential for short-term selling pressure, Wood is optimistic about the long-term prospects. She emphasized that the SEC's green light for a spot Bitcoin ETF will likely allow institutional investors to participate, ultimately benefiting the cryptocurrency's future.
Wood highlighted the significance of a spot Bitcoin ETF for institutional investors, considering it as an accessible avenue to allocate a fraction of trillions of dollars in assets into Bitcoin. She suggested that even a small allocation, such as 0.1% or 0.2% of institutional assets into Bitcoin, could significantly impact the cryptocurrency’s price due to its limited supply of 21 million coins.
ARK Invest, under Wood's guidance, is among the 14 companies that have submitted applications to the U.S. Securities and Exchange Commission for a spot Bitcoin ETF. The ARK 21Shares Bitcoin ETF, developed in partnership with 21Shares, is ARK's proposed Bitcoin ETF product.
Wood expressed positivity about the discussions with the SEC regarding the spot Bitcoin ETF, noting a shift in the regulatory agency's approach. She highlighted a transition from "silent denials" to more comprehensive and thoughtful examinations of technical issues, which has contributed to a productive dialogue with the SEC. This change in approach has fueled Wood's optimism about the potential approval of the first spot Bitcoin ETF by January 10.
