Bitcoin ETFs Approval Positions Cryptocurrency as a Societal Asset: ARK Invest's Tom Staudt
Summary:
ARK Invest's President, Tom Staudt, declares the approval of Bitcoin exchange-traded funds (ETFs) in the U.S. as establishing the cryptocurrency as a societal asset. It's seen not merely as a means of increasing profit, but more as a method to expose more individuals to cryptocurrency. ARK Invest, permitted by the U.S. Securities and Exchange Commission, joins other investment firms in launching Bitcoin ETFs, enabling investors to buy and hold BTC like regular stocks or mutual fund shares.
Sanctioning Bitcoin exchange-traded funds (ETFs) in America classifies the digital currency as a societal asset, according to ARK Invest's president, Tom Staudt. He suggested that the purpose of this Bitcoin investment medium isn't merely about increasing profits, but it’s a strategy to familiarize more people with digital money. Staudt suggested that the priority is ensuring all investors can access this new societal asset. The U.S. Securities and Exchange Commission has given ARK Invest, along with other investment firms, the green light to initiate Bitcoin ETFs, thus enabling investors to incorporate BTC into their portfolios just like any other stocks or mutual fund shares.
Staudt further dwelled on Bitcoin's unique qualities for portfolio makeup and diversification, asserting that the digital currency functions as an insulator against inflation and a risk asset that can deliver additional earnings. He expressed his insights, stating, "Bitcoin has the capacity to serve as both a risk-accepting and risk-avoiding asset. It can be employed in both inflation and deflation apprehensions."
Speaking with CNBC, Cathie Wood, ARK Invest's CEO, validated her opinion that Bitcoin has the potential to reach a value of $1.5 million by the end of 2030, emphasizing that with the SEC's approval, the odds for this bullish scenario have been amplified. She stated that Bitcoin is the unprecedented globally decentralized, rules-based monetary system, which epitomizes a monumental concept.
Starting from Jan. 11, Bitcoin ETFs are being traded on the major exchanges of Wall Street including the Chicago Board Options Exchange, the New York Stock Exchange, and the Nasdaq. Financial analyst, James Seyffart, previously anticipated that Bitcoin ETFs might draw $10 billion within their first year of operation.
ARK has joined hands with fintech firm 21Shares to introduce the Bitcoin product. Other contenders, getting approval on Jan. 10, comprise Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex, and Franklin Templeton.
Published At
1/11/2024 7:07:23 PM
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