Spot Bitcoin ETFs Expected to Attract ‘Substantial’ Institutional Flows, Says Ark Invest CEO

Cathie Wood, the CEO of Ark Investment Management, predicts that spot bitcoin exchange-traded funds (ETFs) will drive the price of bitcoin significantly higher. The U.S. Securities and Exchange Commission (SEC) is set to make a decision on spot bitcoin ETFs by Wednesday. Wood stated, "We believe that the SEC approval, if obtained by us and others, will give institutions the green light. We have been in talks with several institutions, and they are now more interested since the SEC is effectively paving the way."

Cathie Wood's Opinion on Potential Spot Bitcoin ETF Approvals

In an interview with CNBC on Monday, Cathie Wood discussed her perspective on the potential approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). The joint proposal between Ark Investment Management and 21shares is awaiting a decision on Wednesday, which marks the first deadline for spot bitcoin ETF applications this year.

Wood was asked whether institutional investors are more inclined to invest in bitcoin with the potential approval of spot bitcoin ETFs. She responded:

We believe that the SEC approval, if obtained by us and others, will give institutions the green light. We have been in talks with several of them, and they are now more interested since the SEC is effectively paving the way.

When questioned about the likelihood of the SEC approving her firm's spot bitcoin ETF proposal, Wood stated, "We believe the probability of the bitcoin ETF being approved this week is very high. The reason for this, as we have been saying, is that the SEC, after denying it multiple times, started asking questions — very good, detailed, and technical questions. Therefore, we believe they have asked all the necessary questions, and most of us have likely been part of that process."

Wood also expressed her belief that the approval of spot bitcoin ETFs may not lead to the predicted "sell-the-news" reaction. She mentioned, "I think many people are expecting to sell on the news, which might not happen." She emphasized that institutions have already positioned themselves based on this expectation. Wood added, "It's a very short-term outlook, and who knows what will actually happen."

What we do know is that, with our five-year investment time horizon, we anticipate significant flows into this new asset class, particularly from institutions. Even a small allocation by institutions to bitcoin will drive up the price of this increasingly scarce asset.

Wood further elaborated on why she believes the price of bitcoin will continue to rise. She firstly highlighted that bitcoin can be seen as digital gold, noting that gold is a $12 trillion asset, while bitcoin is currently valued at around $800 billion. She explained, "We believe there is some substitution taking place."

She added, "If institutional allocations are as low as 2.5% to 5%, which is where we expect them to be, we will see gradual increases — 0.5% and then 1%. This gradual increase could be the main driver for the rise of bitcoin." Wood concluded:

Currently, there are about 19.5 million bitcoins in circulation, with approximately 15 million held by long-term holders who have not made any transactions in over 155 days. Additionally, the total supply of bitcoin will never exceed 21 million units. Consequently, bitcoin is indeed becoming a scarce asset.

Share your opinion on Cathie Wood's assessment of the impact of spot bitcoin ETFs in the comments section below.

Frequently Asked Questions

Who is entitled to the gold in a IRA that holds gold?

An individual who has gold is considered to be a “form of money” by the IRS and subject to taxation.

You must have at least $10,000 in gold and keep it for at most five years to qualify for this tax-free status.

While gold may be a great investment to help prevent inflation and volatility in the market, it's not wise to keep it if you won't use it.

If you are planning to sell your gold someday, it is necessary that you report its value. This can affect the capital gains taxes that you owe when cashing in on investments.

Consult a financial advisor or accountant to determine your options.

How much do gold IRA fees cost?

An Individual Retirement Account (IRA) fee is $6 per month. This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.

Diversifying your portfolio may require you to pay additional fees. The type of IRA you choose will determine the fees. Some companies offer free checking, but charge monthly fees for IRAs.

A majority of providers also charge annual administration fees. These fees can range from 0% up to 1%. The average rate is.25% per year. However, these rates are typically waived if you use a broker like TD Ameritrade.

Can I keep physical gold in an IRA?

Gold is money. Not just paper currency. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Today, investors invest in gold as part a diversified portfolio. This is because gold tends do better in financial turmoil.

Many Americans today prefer to invest in precious metals, such as silver and gold, over stocks and bonds. It is possible to make money by investing in gold. However, it doesn't guarantee that you'll make a lot of money.

Gold has historically performed better during financial panics than other assets. Between August 2011 to early 2013, gold prices rose close to 100 percent while the S&P 500 fell 21 per cent. During turbulent market conditions gold was one of few assets that outperformed stock prices.

Another benefit to investing in gold? It has virtually zero counterparty exposure. Even if your stock portfolio is down, your shares are still yours. If you have gold, it will still be worth your shares even if the company in which you invested defaults on its debt.

Finally, the liquidity that gold provides is unmatched. You can sell your gold at any time without worrying about finding a buyer, which is a major advantage over other investments. The liquidity of gold makes it a good investment. This allows you to take advantage of short-term fluctuations in the gold market.

Can the government take your gold

Your gold is yours, so the government cannot confiscate it. You have earned it by working hard for it. It belongs to you. However, there may be some exceptions to this rule. Your gold could be taken away if your crime was fraud against federal government. You can also lose precious metals if you owe taxes. However, if you do not pay your taxes, you can still keep your gold even though it is considered property of the United States Government.

What are the benefits of a Gold IRA?

You can save money on retirement by putting your money into an Individual Retirement Account. It will be tax-deferred up until the time you withdraw it. You have total control over how much each year you take out. There are many types available. Some are better suited to college savings. Some are for investors who seek higher returns. Roth IRAs permit individuals to contribute after the age 59 1/2. Any earnings earned at retirement are subject to tax. The earnings earned after they withdraw the funds aren't subject to any tax. So if you're planning to retire early, this type of account may make sense.

An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA, you don't have to worry about paying taxes on your gains while you wait to access them. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.

Another benefit of owning gold through an IRA is that you get to enjoy the convenience of automatic withdrawals. It means that you don’t have to remember to make deposits every month. You could also set up direct debits to never miss a payment.

Finally, gold remains one of the best investment options today. Its value is stable because it's not tied with any one country. Even during economic turmoil, gold prices tend to stay relatively stable. Gold is a good option for protecting your savings from inflation.

How much of your IRA should include precious metals?

The most important thing you should know when investing in precious metals is that they are not just for wealthy people. They don't require you to be wealthy to invest in them. There are many ways that you can make money with gold and silver investments, even if you don't have much money.

You might also be interested in buying physical coins, such bullion rounds or bars. Shares in precious metals-producing companies could be an option. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.

You'll still get the benefit of precious metals no matter which country you live in. They are not stocks but offer long-term growth.

Their prices rise with time, which is a different to traditional investments. So, if you decide to sell your investment down the road, you'll likely see more profit than you would with traditional investments.


  • This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (
  • If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (
  • You can only purchase gold bars at least 99.5% purity. (
  • If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (
  • Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (

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How To

Tips to Invest in Gold

Investing in Gold is one of the most popular investment strategies worldwide. There are many advantages to investing in Gold. There are many options for investing in gold. Some people buy physical gold coins, while others prefer investing in gold ETFs (Exchange Traded Funds).

Before you purchase any type or gold, here are some things to think about.

  • First, verify that your country permits gold ownership. If you have permission to possess gold in your country, you can then proceed. If not, you may want to consider purchasing gold from overseas.
  • The second is to decide which kind of gold coin it is you want. You have options: you can choose from yellow gold, white or rose gold.
  • Thirdly, you should take into consideration the price of gold. Start small and move up. You should diversify your portfolio when buying gold. Diversifying your portfolio includes stocks, bonds, mutual funds, real estate, commodities, and mutual funds.
  • Last but not least, remember that gold prices fluctuate frequently. It is important to stay up-to-date with the latest trends.

By: Kevin Helms
Title: Spot Bitcoin ETFs Expected to Attract ‘Substantial' Institutional Flows, Says Ark Invest CEO
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Published Date: Tue, 09 Jan 2024 03:30:34 +0000

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