In an interview on the New Zealand Herald's Markets With Madison online video show, Cathie Wood once again reiterated her belief that Bitcoin (BTC 1.45%) will soar to more than $1 million sooner than later. This isn't the first time Wood has claimed Bitcoin would reach $1 million, but it is the first time she's said that a million-dollar-plus Bitcoin could happen before her past estimate of 2030.
Her remarks may come off as sensational, but they aren't without merit. Citing multiple fundamental characteristics that make Bitcoin a superior currency, along with some more recent developments, Wood has made a case for a seven-figure Bitcoin that isn't as crazy as it seems. Here's why she and her team at ARK Invest think Bitcoin's future is so bright.
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Why Bitcoin
Before getting into recent developments that accelerated Wood's timeline of Bitcoin going north of $1 million, it's worth understanding why she is such a big fan of Bitcoin.
First and foremost, she is a fan of innovation. Her firm ARK Invest has made a name for itself due to its strategy of building portfolios that embrace cutting-edge, innovative industries such as genomic, artificial intelligence, and of course, cryptocurrencies and blockchain technology.
In terms of Bitcoin specifically, Wood thinks the cryptocurrency represents a paradigm shift in the world of finance. Never before has a currency like Bitcoin existed. As Wood highlighted in her interview, it is "the first global, private, digital, decentralized, rules-based monetary system in history."
These characteristics put Bitcoin in a position to lead a monetary revolution that will alter the financial sovereignty of individuals, institutions, and possibly even entire countries. Add it all up, and Wood foresees Bitcoin's market cap reaching more than $20 trillion in the future, good enough to send the price of each Bitcoin well past the $1 million mark.
The institutions are knocking on Bitcoin's door
As previously mentioned, Wood has been quite vocal about her belief in Bitcoin. As early as 2022, she made headlines for claiming that Bitcoin had what it takes to reach more than $1 million by 2030.
However, now she is reconsidering her timeline and believes that the cryptocurrency will hit the seven-figure mark before 2030. The primary catalyst that has forced her to reshape her prediction is the Bitcoin exchange-traded funds (ETFs) that were approved back in early January.
Collectively, they have been one of the most popular ETF launches in history. This popularity shows just how much appetite there is in the financial world for Bitcoin. Consider that BlackRock's iShares Bitcoin Trust (IBIT -1.47%) reached more than $10 billion in assets under management in just seven weeks, the fastest any ETF has reached that landmark as proof.
Yet, as big of a hit as these ETFs have been, Wood believes it is just the first step in Bitcoin's journey of proliferating the world of traditional finance.
As she explained, all of the recent price action has happened before any wirehouse has gotten in on the Bitcoin game. These wirehouses provide essential services in the financial world such as investment advisory, wealth management, and brokerage services, and consist of household names like Morgan Stanley, Wells Fargo, and Bank of America. If these heavyweights adopt Bitcoin, it could set off a domino effect that inevitably catapults the cryptocurrency to new heights. But as Wood put it simply, until the wirehouses join in, "We haven't even begun."
She went on to explain that ARK might have underestimated just how much interest in Bitcoin would come from institutions. They have now doubled their expectations on institutional buy-in. Known for their deep pockets and significant capital at their disposal, as Wood sees it, greater involvement from institutions holds the potential to accelerate Bitcoin's ascent to the coveted $1 million mark.
