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ARK’s Cathie Wood Predicts Short-term Selling Upon Spot Bitcoin ETF Approval  

Cathie Wood, behind Ark Invest, argues that some investors sell in the short term on learning of the US Securities and Exchange Commission (SEC) approving spot Bitcoin exchange-traded fund (ETF). The American investor doubles as the chief and investment executive at the asset management firm and iterated that the long-term holders would realize the most significant reap. 

Investors to Profit From Big Anticipatory Move on Bitcoin

The Ark Invest chief considers that the increasing anticipation of the SEC approving the spot Bitcoin ETFs can adversely affect the BTC price. The ARK Invest chief investment executive predicts that such an effect could last for a short period. 

Wood believes that investors could seek to profit from the news of the Gary Gensler-led security watchdog greenlighting the spot Bitcoin ETF. She observes that such investors could seek profits given that the Bitcoin price has rallied over 156.1% to test above $43000 as per CoinGecko in anticipation of Bitcoin ETF approval. 

Wood revealed in her Tuesday, December 26 interview with Yahoo Finance that a section of the investment community would not miss the opportunity to reap gains from the big anticipatory move on Bitcoin. 

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Wood ruled out it becoming an exception for some investors to sell on the news, referring to the contingent that moved in and enjoyed excellent profits. She explained that the expression will become live among traders anticipating the approval event, hence eye beating up the price and selling in the short.  

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Wood admitted that the short-term impact realizable from the spot Bitcoin ETF approval is several investors selling Bitcoin. Nonetheless, such an effect is short-lived since the long term holds a promising and essential return.  

Institutional Capital Inflow to Trigger Bullish Momentum

The American investor’s company is among the hopefuls for the approval of its bid for spot Bitcoin ETF. She indicated that selling on the news would not last, considering that SEC approval constitutes a green light and gateway that the institutional investors would leverage to participate in crypto

Wood expects that the spot Bitcoin ETF approval would constitute the easiest means for institutions to access and realize exposure to Bitcoin. The Ark Invest chief executive believes that the approval will facilitate the traditional finance institutions to allocate a portion of their trillions of capital towards Bitcoin. 

The token price would rally wildly for wood projects if institutional investors allocated 0.1% – 0.2% of their assets to Bitcoin. The investor indicated that considering the Bitcoin supply is capped at 21 million coins, the considerable inflow chasing coins available would trigger a bullish momentum for the token.  

Wood’s asset management firm ARK Invest is among the frontrunners alongside BlackRock, Grayscale, and Fidelity in the pack of 14 firms that filed bids with the SEC. ARK Invest’s quest for the spot Bitcoin ETF, identified ARK 21Shares Bitcoin ETF, involves a collaborated initiative with 21Shares, known for providing crypto exchange-traded products in Europe. 

Ark Invest Executive Labels SEC Dialogues Fruitful

Wood observed in the Tuesday interview that Ark Invest’s roundtable discussions with the SEC regarding spot Bitcoin ETF were very positive. The pronouncement by Wood adds optimism of likely approval of the inaugural spot Bitcoin ETF that analysts predict by January 10. 

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Wood reflected on the changed perspective demonstrated by the SEC in the past month to six weeks. She observed that the security regulator ditched the silent denials it religiously portrayed for the past decade for detailed and thoughtful engagements. 

Wood echoes the admission by the SEC chair that the court ruling in the Grayscale Investment case directing the agency to review the bid to convert the Bitcoin Trust into spot Bitcoin ETF prompted a new perspective on the applications. 

Wood reflected on the SEC’s engaging the applicants on the technicality of in-kind creation, cash, and in-kind redemption models. The executive expressed optimism in the fruitful dialogues the applicants had with SEC to support approval in January.  


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Stephen Causby

Stephen Causby is an experienced crypto journalist who writes for Tokenhell. He is passionate for coverage in crypto news, blockchain, DeFi, and NFT.

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