- Cathie Wood says SEC approval of a spot bitcoin ETF could spark some selling pressure in the short-term as investors “sell the news” and take profits
- However, Wood believes long-term implications of a bitcoin ETF are very positive, as it would enable easier institutional adoption
- Recent constructive dialogue between ARK Invest and the SEC leads Wood to believe there is a good chance spot bitcoin ETFs get approved in January
The potential SEC approval of a spot Bitcoin exchange-traded fund (ETF) could have some negative short-term impacts on Bitcoin’s price, according to ARK Invest CEO Cathie Wood. She believes some investors may “sell the news” and take profits after anticipating the event.
The Approaching ETF Decision
Cathie Wood, the founder and CEO of ARK Invest, thinks some investors will “sell on the news” after the Securities and Exchange Commission (SEC) potentially approves a spot Bitcoin ETF. She believes investors who enjoyed price gains in anticipation of an ETF may sell to lock in profits once it is approved.
Short-Term Vs. Long-Term Impact
While selling pressure could emerge in the short term, Wood views the long-term implications of a spot Bitcoin ETF as very positive. She thinks SEC approval would give institutional investors an easy way to allocate to Bitcoin. Even small allocations from institutions could significantly impact Bitcoin’s price, given its limited supply.
The Path to Approval
ARK Invest is one of several firms seeking SEC approval for a spot Bitcoin ETF. Wood says recent discussions with the SEC have been productive, with the agency asking thoughtful questions lately. This positive dialogue leads Wood to believe there is a good chance spot Bitcoin ETFs get approved in January.
The anticipated SEC decision on spot Bitcoin ETFs could cause some short-term volatility. But Cathie Wood remains optimistic that an approval would enable more institutional adoption over the long run, which she argues would be very bullish for Bitcoin’s price.
