Cathie Wood Envisions $25 Trillion Crypto Market Valuation by 2030 Driven by Institutional Demand: Report
ARK Invest CEO Cathie Wood is projecting a substantial surge of over 2,100% in the aggregate market capitalization of cryptocurrencies within a span of fewer than seven years.
In a recent interview conducted by Benzinga, Wood posits that financial institutions are poised to initiate significant investments in Bitcoin (BTC) and other digital assets, consequently propelling the cumulative valuation of the cryptocurrency market.
Wood identifies the potential endorsement of a Bitcoin exchange-traded fund (ETF) as a pivotal trigger for an influx of institutional investments.
The prospects of ETF approval appear to be more promising following Grayscale’s triumph over the U.S. Securities and Exchange Commission (SEC). This triumph compels the regulatory body to reevaluate the application of the digital asset manager to transform its Bitcoin Trust into an ETF.
“If institutions intend to make substantial inroads, this would result in a noteworthy surge in demand, juxtaposed with a comparatively marginal increase in the supply of Bitcoin. The most plausible approach to achieving this entails a competitive elevation of the price.”
As indicated by Benzinga, Wood anticipates that institutional investments would propel the existing $1.13 trillion market capitalization of the cryptocurrency market to potentially reach as high as $25 trillion by the year 2030. Moreover, Bitcoin would constitute more than fifty percent of this cumulative market valuation.
The seasoned investor outlines that ARK’s fundamental projection for Bitcoin entails a valuation of approximately $650,000 by 2030, with a more optimistic scenario projecting a figure approximately twice that amount.
“This marks the inception of a global, private, digital, rules-based monetary system, unparalleled in history. The magnitude of this concept is considerable… We are of the view that the comprehensive cryptocurrency asset market will attain a valuation of approximately $25 trillion by 2030.”
At the time of writing, Bitcoin is trading at $27,158.