Cathie Wood Bullish on Bitcoin's Potential, Foresees ETF Approval Impact

Renowned investor Cathie Wood remains optimistic about Bitcoin's prospects, envisioning substantial growth potential following the anticipated ETF approval. Speculations suggest this approval could occur imminently, potentially influencing market dynamics.

SEC's Shifting Stance:

Wood noted the SEC's change in behavior, from prior denials to asking pertinent questions, hinting at an imminent approval during an interview on CNBC's "Fast Money Halftime Report."

Sell-Off Speculations and Wood's Contrary View:

Anticipating the approval, market sentiments hint at a possible sell-off. However, Wood contends that widespread expectations of a sell-off might already be factored into market positioning, potentially negating its impact.

Post-Approval Trajectory:

Contrary to market speculations, Wood foresees Bitcoin's upward trajectory continuing post-approval. She expects increased accessibility and substantial inflows from both retail and institutional investors.

Institutional Involvement Post-Approval:

Wood views SEC approval as a green light for institutions to invest in Bitcoin, potentially triggering significant price escalations due to increased institutional allocations to the asset.

Bitcoin's Comparative Analysis to Gold:

Wood likened Bitcoin to digital gold, highlighting the asset's scarcity. She drew parallels between Bitcoin's market cap of $900 billion and gold's $12 trillion market, predicting potential asset substitution post-ETF approval.

Supply-Demand Dynamics and Future Valuation:

Highlighting Bitcoin's limited supply (capped at 21 million), Wood emphasized the growing demand amid limited circulating supply. She hinted at a potential surge if Bitcoin were to reach a market cap similar to gold's, projecting a value exceeding $600,000 per coin.

Bitcoin Price Movement:

At the time of reporting, Bitcoin exhibited a 6% increase over 24 hours, trading at approximately $46,793, according to Benzinga Pro data.

Amidst evolving market sentiments and regulatory developments, Wood's perspectives offer a contrasting view on Bitcoin's future, signaling potential shifts in its valuation and market landscape.