ARK Invest CEO Cathie Wood is reportedly predicting a more than 2,100% increase in the total market capitalization of cryptocurrencies in less than seven years.
In a new interview with Benzinga, Wood says that financial institutions will likely start investing heavily in Bitcoin (BTC) and other digital assets, driving up the total crypto market cap.
[adinserter block="1"]She says one catalyst for a flood of institutional investment would be the approval of a Bitcoin exchange-traded fund (ETF).
The chances of an ETF approval may be more likely after Grayscale’s victory against the U.S. Securities and Exchange Commission (SEC) which will force the regulator to reconsider the digital asset manager’s application to turn its Bitcoin Trust into an ETF.
Says Wood,
“If institutions want to move in, that’s going to be a lot of incremental demand for not that much more incremental [Bitcoin] supply.
The only way to do that is to bid the price up.”
According to Benzinga, Wood predicts that the institutional investment would send the current $1.13 trillion crypto market cap up to as high as $25 trillion by sometime in 2030, and Bitcoin would comprise more than half of that total market cap.
The veteran investor says that ARK’s “base case” for Bitcoin is a price of roughly $650,000 in 2030, and a more bullish case of about double that.
“[It’s the] first global, private, digital, rules-based monetary system the world has ever known. That’s a big idea…We think the total crypto asset market in 2030 will be valued at roughly $25 trillion.”
Bitcoin is trading at $27,158 at time of writing.
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