- Ark Invest CEO Cathie Wood expects crypto ETFs to keep a strong role in the economy, even as crypto wallet use grows.
- About 200 million active Bitcoin wallets exist globally, while U.S. spot Bitcoin ETFs saw $2.75 billion in inflows the week ending May 23.
- Total inflows since the launch of U.S. spot Bitcoin ETFs in January 2024 reached $44.49 billion; spot Ether ETFs have gathered $2.77 billion since July 2024.
- Wood said Ether ETFs were less successful than expected due to the U.S. Securities and Exchange Commission’s ban on staking within ETFs.
- Wood indicated that high-profile meme coins and lack of executive action can impact institutional views on coins like Solana.
ARK Invest CEO Cathie Wood stated on May 23 in New York that crypto exchange-traded funds (ETFs) are likely to remain key tools for investors, regardless of how widespread crypto wallet adoption becomes over the next decade. Wood spoke at the Solana Accelerate event, emphasizing that ETFs offer accessibility for those seeking convenience.
Recent data shows approximately 200 million active Bitcoin wallets in use worldwide. According to Farside, U.S. spot Bitcoin ETFs recorded about $2.75 billion in inflows during the week ending May 23. Since their launch in January 2024, total inflows have topped $44.49 billion. U.S.-based spot Ether ETFs, launched in July 2024, accumulated around $2.77 billion.
Wood described ETFs as a gateway for mainstream investors. She said, “ETFs for those who want the convenience, I don’t think, will lose a lot of their luster. But they will be a stepping stone into wallet-based.” Wood also called crypto wallets an insurance policy against issues in the traditional financial system.
Addressing investors’ interest, Wood pointed out that U.S. spot Ether ETFs underperformed expectations because the Securities and Exchange Commission did not permit staking—the practice of earning extra coins by holding and validating cryptocurrency. The SEC recently delayed its decision on expanding staking options, including in Bitwise’s Ether ETF application.
Wood noted that newcomers may first enter the market through Ether as it underpins smart contract technology and later branch out to other coins like Solana. She said, “So they might start in the smart contract world with Ether, but once they study the technology, and follow the developers, and see the uptake by consumers, I think they will get there.”
Speaking about Solana, Wood suggested that the launch of the Official Trump memecoin in January on its network might have lowered institutional enthusiasm. The coin dropped about 50% shortly after launch, with no crypto-related executive orders following from the former president.
ARK recently raised its bullish target for Bitcoin from $1.5 million to $2.4 million by 2030, citing increased adoption by institutional investors and growing acceptance of Bitcoin as “digital Gold.” Wood said her price estimate for Solana is still under review and will be shared after further research.
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