Cathie Wood: Crypto ETFs Remain Vital Despite Wallet Growth
Cathie Wood on the Future of Crypto ETFs
ARK Invest CEO Cathie Wood believes crypto exchange-traded funds (ETFs) will remain significant, even as cryptocurrency wallet adoption increases over the next decade. Speaking at the Solana Accelerate event in New York on May 23, Wood highlighted the simplicity of ETFs for consumers compared to the perceived complexity of managing digital wallets.
"ETFs offer a convenient entry point," Wood stated. "They won't lose their appeal, but they will serve as a gateway to wallet-based investing." She further described wallets as "insurance policies against issues in the traditional financial system."
ETF Inflows and Wallet Adoption
Data from Bitbo indicates approximately 200 million active Bitcoin wallets globally. This contrasts with the $2.75 billion in inflows into US-based spot Bitcoin ETFs during the week ending May 23, a period coinciding with Bitcoin reaching a new all-time high of $111,970 on May 22.
Since the launch of US spot Bitcoin ETFs in January 2024, $44.49 billion in inflows have been recorded (Farside data). Spot Ether ETFs, launched in July 2024, have seen approximately $2.77 billion in inflows. Wood attributed the relatively lower success of Ether ETFs to the SEC's restrictions on staking.
Ether's Role and Solana's Challenges
Wood views Ether as a key entry point for investors new to smart contracts, paving the way for exploration of other cryptocurrencies such as Solana. However, she acknowledged potential investor hesitation towards Solana following the launch of the Official Trump (TRUMP) memecoin, which experienced a significant drop shortly after its debut.
Wood's comments came in response to ETF analyst Eric Balchunas' observation that Bitcoin's "digital gold" narrative is easily understood by a broader audience than other cryptocurrencies. She concluded by mentioning that ARK's Solana price target is under development.
ARK's Bitcoin Price Prediction
In April, ARK raised its Bitcoin price target to $2.4 million by the end of 2030, driven by increasing institutional adoption and Bitcoin's growing recognition as "digital gold."
Codeum Note: Codeum provides comprehensive blockchain security solutions, including smart contract audits, KYC verification, custom smart contract and DApp development, tokenomics and security consultation, and partnerships with launchpads and crypto agencies. We help ensure the safety and success of your blockchain projects.