Crypto ETFs won’t lose ‘their luster’ as wallet adoption grows — Cathie Wood
Cathie Wood, CEO of ARK Invest, asserts that crypto exchange-traded funds (ETFs) will remain significant in the economy despite increasing crypto wallet adoption. She views ETFs as a convenient option for consumers who find wallets complicated. Wood describes wallets as insurance policies against traditional market failures. Current data indicates around 200 million active Bitcoin wallets globally, with $2.75 billion inflows into US-based spot Bitcoin ETFs during the week ending May 23, coinciding with Bitcoin's all-time high of $111,970. Since their January 2024 launch, spot Bitcoin ETFs have seen $44.49 billion in inflows. Spot Ether ETFs have attracted $2.77 billion since July 2024, though Wood notes their underperformance due to SEC restrictions on staking. She believes Ether serves as an entry point for new investors to learn about smart contracts before exploring other cryptocurrencies like Solana. Wood expresses concern that the launch of Donald Trump's memecoin on Solana may have deterred institutional investors. ARK's bullish Bitcoin price target has been raised to $2.4 million by 2030, driven by institutional interest and Bitcoin's status as "digital gold."
