Despite the collapse of FTX and the prolonged decline of the cryptocurrency market, Ark Invest Founder and CEO Cathie Wood is sticking to her prediction that Bitcoin will reach $1 million by 2030.
Furthermore, she doesn’t seem to be bothered by the falling prices of Grayscale’s Bitcoin Trust (GBTC), as her company bought an additional 176,945 shares.
Optimistic regardless of events
The shocking collapse of cryptocurrency exchange, FTX, added to previous negative events in the industry and increased investor doubts. Even the most optimistic participants believe it will take time for the market to get back on its feet.
However, Ark Invest’s Cathie Wood is not among them. In a recent interview with Bloomberg, she restated her prediction that Bitcoin is heading towards a value of one million dollars per coin.
In fact, she expressed the view that such failures could be useful as they show what the valuable plays in the industry are:
“Sometimes you need to go through a crisis to see who the survivors are. Bitcoin comes out of it smelling like a rose.”
The excitement will return
Wood believes that the only downside to the current situation is reduced interest from large institutions. However, she believes they will soon realize the advantages of the main cryptocurrency and embrace it.
The enthusiasm towards BTC will return in the next couple of years, which means it will reach its milestone by 2030, the Ark Invest executive concluded.
Mass adoption for Ethereum
She is also optimistic about Ethereum, stating that it could be subject to massive institutional adoption in the coming years.
Ark Invest increases exposure to GBTC
The valuation of GBTC shares has declined significantly due to the ongoing winter in cryptocurrencies. They are currently trading at around $8.40, a 27% drop compared to last month’s figures.
However, Ark Invest continues to expand its holdings and recently bought more than 176,000 shares, worth about $1.5 million. A week ago, Ark bought $273,000 worth of shares. This came as a surprise, as it happened amid severe market turmoil caused by the FTX disaster.
Grayscale’s GBTC is currently trading at a 42.7% discount to spot BTC prices. It set the largest discount in the fund’s history on November 18, when the rate reached 45%. GBTC is the largest Bitcoin fund and manages over 635,000 BTC, an amount equal to almost $10.5 billion according to current prices.
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