Ark Invest has recently acquired 94,918 shares of its own Bitcoin Exchange-Traded Fund (ETF), a move that underscores CEO Cathie Wood's enduring optimism about the future growth potential of the cryptocurrency. Wood has asserted her belief that Bitcoin could escalate to a price exceeding $1.5 million by 2030.
According to an article published by Coingape.com, the total expenditure for this purchase amounts to approximately $3.78 million USD. In addition, Ark divested 198,873 shares of the ProShares Bitcoin Futures ETF, garnering roughly $3.82 million USD. Over the past two months, Ark has implemented structural changes to its crypto portfolio, including significant sales of holdings in cryptocurrency firms Coinbase and Block Inc.
As reported by Yahoo Finance, Wood and her firm anticipate that Bitcoin's price will surge due to three primary factors. Firstly, Wood asserts that Bitcoin will maintain its position as the leading cryptocurrency for an extended period. She justifies this prediction with the fact that for the past 15 years, blockchain technology has functioned without any entity supervising its daily operations. As Bitcoin approaches its one-billionth transaction milestone, it is noteworthy that in 2023, the cryptocurrency's blockchain facilitated more transactions than Visa did. The hash rate - a metric used to gauge computing power - suggests that Bitcoin is 500 times more powerful than the world's most advanced supercomputer.
The Yahoo Finance article also indicates that companies are likely to feel more secure investing in Bitcoin as it gains acceptance as an ETF. The SEC's approval of these ETFs has reduced many of the barriers previously deterring firms from using Bitcoin. Furthermore, Wood posits that instability in current global financial structures could favor Bitcoin due to its decentralized nature. During the banking crisis in March 2023, for instance, Bitcoin surged over 35% as investors increasingly turned to this currency. At present, Bitcoin is trading at $41,737 USD.
