As the U.S. SEC prepares to announce its decision on the approval status of 12 spot Bitcoin ETF applications, Cathie Wood of Ark Invest provides insights into how the securities regulator is likely to approach this matter in the future.
During her interview on CNBC’s Squawk Box on Tuesday, November 14, Cathie Wood said that Gary Gensler is aspiring to be the Treasury Secretary and that might be the actual reason for him delaying the spot Bitcoin ETF.
Gensler’s hesitancy regarding a spot Bitcoin ETF is rooted in his concerns about potential manipulation, she added. Considering the deep understanding SEC Chair Gary Gensler possesses about Bitcoin (BTC), it’s challenging to find a rational explanation for his opposition to a spot ETF, according to ARK Invest CEO Cathie Wood.
She emphasized the decentralized and transparent nature of the Bitcoin network, making manipulation highly improbable. Wood noted Gensler’s expertise in the field, having taught a course on crypto and blockchain at the Massachusetts Institute of Technology (MIT) before assuming the role of SEC Chair.
Regardless, Wood maintains a bullish stance on crypto, foreseeing the eventual approval of a spot ETF. She believes this approval could serve as one of the catalysts propelling the cryptocurrency market cap from its current $1 trillion to a substantial $25 trillion opportunity by 2030.
Last week, the Bitcoin price made a significant rally all the way up to $37,000 as the window for Bitcoin ETF approval opened up. The US SEC is likely to take the final call by the 17th of November. There’s a high chance that the SEC could further delay the ETF approval.
Bloomberg’s senior ETF strategist James Seyffart said that as the deadline approaches for three spot Bitcoin ETF applications, there’s a likelihood of SEC delay orders. Despite potential delays, our perspectives and the 90% probability for 19b-4 approval by January 10, 2024, remain unchanged.
Interestingly, BlackRock has mentioned some stablecoin risks that would arise for the spot Bitcoin ETF approval. BlackRock highlights the volatility of stablecoins, emphasizing their potential to cause fluctuations in Bitcoin’s price. Although stablecoins have a fixed value tied to the fiat currency, they often lose the peg in the case of events like the banking crisis following SVB’s collapse earlier this year.
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