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October 3, 2022
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US investment company ARK Investment CEO “In the future, more companies will add Bitcoin to their balance sheets.”

Bitcoin as an inflation hedge

Cathie Wood, CEO of U.S. investment firm ARK Investment Management (ARK), believes that more companies may add crypto assets (cryptocurrency) Bitcoin (BTC) to their balance sheet in the future. showed that.

In an interview with Yahoo Finance, he argued that IT companies that understand BTC technology in particular will lead the trend. He also revealed that he has received consultations from major companies as to whether cash should actually be replaced with BTC or other virtual currencies.

As the supply of legal tender continues in each country to curb the economic impact of the spread of the new coronavirus infection, there has been an increasing movement to use BTC as an inflation hedging instrument since last year. In particular, MicroStrategy, a company listed on NASDAQ, has been continuously purchasing BTC, and reported that it bought about 314 BTC (equivalent to 1 billion yen at the current rate) last week.

Relation: MicroStrategy purchases additional 1 billion yen worth of Bitcoin

ARK released on the 26thReportSo, if a company included in the US stock index “S & P 500” replaces 1% of its cash with BTC, it is estimated that about 40,000 dollars (about 4.14 million yen) will be added to the current BTC price. There is.

According to the company’s analysis, BTC’s market capitalization will range from more than $ 500 billion (about 52 trillion yen) to $ 1 trillion (about 103 trillion yen) to $ 5 trillion (about 518 trillion yen) in the next five or ten years. ).

“I don’t think there is a better inflation hedging tool than BTC,” Wood said.

About BTC ETFs

At an event held on the 26th, Mr. Wood said that BTC’s exchange-traded fund (ETF) will not reach a market capitalization of $ 2 trillion (about 207 trillion yen) due to rising demand for BTC, the US Securities and Exchange Commission The (SEC) said it would not approve. Overseas media reported.

Gabor Gurbacs, director of digital asset strategy at Van Eck, a U.S. investment manager looking to approve BTC ETFs, questioned Wood’s view, arguing that market capitalization does not seem to be relevant to ETF approval. Although it has been pointed out that it is a virtual currency mediaCoinDeskWood is bullish on BTC’s ETF approval, he said.

Relation: US asset management company VanEck applies for “cryptocurrency-related company ETF” to SEC

The rationale for the bullish stance is that US President Joe Biden has nominated former SEC Secretary Gary Gensler of the US Commodity Futures Trading Commission (CFTC). Some have already speculated that the tide may change for US ETFs that were previously unapproved due to price-fixing risks and an inadequate custody environment.

Mr. Gensler has a reputation as a university professor at MIT for his high knowledge of virtual currencies, such as giving classes related to BTC and blockchain.

“If Gensler becomes SEC Secretary, I think BTC’s ETFs will be approved in the United States by the end of 2021,” said James Seyffart, an ETF research analyst at Bloomberg.

Relation: New Bitcoin ETF application in the US Aiming to be listed on the NY Stock Exchange

“Gensler supports BTC,” Wood said, hoping for future regulation.

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Author: K. Kobayashi
reference:Yahoo Finance

Images used under Shutterstock license
“Cryptocurrency” means “cryptocurrency”

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