Crypto ETFs won’t lose ‘their luster’ as wallet adoption grows — Cathie Wood

ARK Invest CEO Cathie Wood says crypto exchange-traded funds (ETFs) volition apt support their spot successful the system nary substance however large crypto wallet adoption becomes implicit the adjacent decade.

“I deliberation ETFs are an important stepping chromatic because, you know, wallets look truthful complicated, truthful overmuch friction for consumers, they conscionable wanna propulsion a button,” Wood said astatine the Solana Accelerate lawsuit successful New York connected May 23.

Wallets stay an security policy, says Wood

“So ETFs for those who privation the convenience, I don’t think, volition suffer a batch of their luster,” she said. “But they volition beryllium a stepping chromatic into wallet-based.”

Bitbo data suggests that determination are astir 200 cardinal progressive Bitcoin (BTC) wallets worldwide. Meanwhile, the trading week ending May 23 saw astir $2.75 cardinal inflows into US-based spot Bitcoin ETFs, coinciding with Bitcoin reaching a caller all-time precocious of $111,970 connected May 22.

Cathie Wood spoke to ETF expert Eric Balchunas astatine Solana Accelerate connected May 23. Source: Solana

Since spot Bitcoin ETFs launched successful the US successful January 2024, astir $44.49 cardinal successful inflows person been recorded, according to Farside data. Meanwhile, spot Ether (ETH) ETFs person seen astir $2.77 cardinal successful inflows since launching successful July 2024.

Wood said that spot Ether ETFs were “less palmy than radical were expecting” due to the fact that the US Securities and Exchange Commission did not let staking.

However, Wood inactive views Ether arsenic the introduction constituent for caller investors to familiarize themselves with astute contracts earlier exploring different cryptocurrencies, specified arsenic Solana (SOL).

“So they mightiness commencement successful the astute declaration satellite with Ether, but erstwhile they survey the technology, and travel the developers, and spot the uptake by consumers, I deliberation they volition get there,” Wood said.

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Wood said that the motorboat of US President Donald Trump’s memecoin, Official Trump (TRUMP), successful January connected the Solana web whitethorn person caused investors to beryllium skeptical of Solana.

“Institutions and you’re saying 60-year-olds…I deliberation they mightiness beryllium a small turned disconnected by what happened with the Trump memecoin,” Wood said. Just days aft its motorboat connected Jan. 17, TRUMP slid astir 50% aft the president made nary crypto-related “day one” enforcement orders.

“I mean, that mightiness scare them,” Wood said. Her comments came successful effect to ETF expert Eric Balchunas reiterating the constituent that Bitcoin is “so easy” to explicate to a “boomer oregon adviser” arsenic being integer gold, but different cryptocurrencies “are tougher.”

Wood said her Solana terms people is successful advancement and that she volition stock it erstwhile the probe is complete.

In April, ARK raised its “bull case” Bitcoin terms people from $1.5 cardinal to $2.4 cardinal by the extremity of 2030, chiefly driven by organization investors and Bitcoin’s expanding acceptance arsenic “digital gold.”

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