Ark Invest CEO Cathie Wood doubled down on her views about the importance of Bitcoin (BTC 1.53%) this week. In a video interview with CNBC on Tuesday, she discussed the introduction of 11 exchange-traded funds (ETFs) based on Bitcoin's real-time spot price. The new funds have lost some value in the early going, but she said she expected as much.
Wood's words on Bitcoin
"This hasn't disturbed our point of view at all," Wood told CNBC. "We think this is one of the most important investments of our lifetimes. This is a global, rules-based monetary system. It's a very big idea, and we think it's the biggest of all the crypto ideas out there."
Cathie Wood's Bitcoin engagement isn't new. She has been pounding the table about the largest and oldest cryptocurrency for years, suggesting lofty price targets such as $1.48 million per coin by the year 2030. Ark Invest's funds don't hold Bitcoin directly, relying on indirect investments such as mutual funds and crypto-oriented stocks instead.
Wood's diversified growth-stock funds have not rushed to invest in the new Bitcoin ETFs, but her team manages one of the 11 new names. The Ark 21Shares Bitcoin ETF (ARKB -1.61%) is one of the larger funds early on, with $481 million of Bitcoin assets under management so far.
What's the big deal with Bitcoin ETFs?
The establishment of these ETFs is a significant milestone in the integration of cryptocurrencies into the traditional financial system. Spot-price ETFs add a layer of regulatory and fund-management safety to the cryptocurrency, giving many individual and institutional investors a more comfortable on-ramp to the crypto sector.
Wood's commitment to Bitcoin through the Ark 21Shares Bitcoin ETF indicates a firm belief in its future value, and she restated her long-term expectations of a million-dollar Bitcoin future. In other recent updates, she pointed out potential catalysts such as the upcoming halving of Bitcoin mining rewards and favorable trading patterns in recent months. It remains to be seen how quickly Bitcoin can reach Wood's soaring price targets, but the potential for continued growth in the digital economy is quite inspiring.