Ark Investment CEO Cathie Wood has increased her prediction that Bitcoin’s price will rise tenfold over the next five year. She said Ark’s confidence has been greatly increased by the exponential growth of DeFi and NFTs, as well as the Eth2 upgrade.
Wood predicted that Bitcoin would be worth almost $500,000 by 2026. She stated that Ark Investment’s future exposure was likely to be 60% Bitcoin and 40% Ethereum.
Wood made the comments Monday during a live stream from the SALT Conference in New York.
Her BTC price thesis relies on more companies adding Bitcoins to their balance sheets, and institutional investors allocating approximately 5% of their portfolios towards Bitcoins or other cryptos.
She believes that Bitcoin is still the default currency in the crypto space, with El Salvador declaring it legal tender and Central America signalling that they might soon follow.
She said that Ethereum is becoming increasingly attractive as an investment because of the explosion in developer activity related NFTs/DeFi.
She said, “I’m fascinated by what’s happening in DeFi. It’s collapsing financial infrastructure costs in a manner that I know the traditional financial sector does not appreciate right at the moment.”
“Our trust in Ethereum has increased dramatically since we saw the transition from Proof of Work to Proof of Stake.”
Ark Investment manages many actively traded funds, with a particular focus on disruptive innovation. It has large investments in Coinbase, and shares in Grayscale Bitcoin Trust. Wood frequently speaks about her passion for Bitcoin.
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Wood stated that she believes no regulator, even the new SEC chair Gary Gensler would be willing to take responsibility for preventing the next major tech breakthrough.
“I’m happy that he understands crypto, and Bitcoin in particular. He is a regulator though and he’s a hardcore regulator.”
Wood believes that the SEC’s threat to bring legal action against Coinbase over the launch of a stablecoin yield products highlights the fact that the crypto ecosystem has been growing faster than regulators have been capable of keeping up.
She believes Coinbase should not be particularly concerned. Wood pointed out that in October 2019, Canada’s largest Bitcoin/digital asset manager received a favorable decision from the Ontario Securities Commission (OSC), to offer a publicly traded Bitcoin fund.