Fund Manager: BTC ETF Is Unlikely Until The Market Cap Hits $2 Trillion

A fund manager explained that a  bitcoin ETF is looking unlikely still at least until the market cap hits $2 trillion so let’s find out more in our latest Bitcoin news.

The crypto fund manager said that the much-awaited BTC ETF will be delayed until the milestone is reached.  BTC and the crypto exchange-traded funds are on the wishlist of the market participants for quite some time now especially among the professional and retail managers in the US. These products are regulated and custodied crypto offerings that allow traders and investors to bet on the growth of cryptocurrencies by using a legal and well-regulated platform that lowers down the risks of counterparties.

#Bitcoin price could increase by $400k. -> This doesn't come from a crypto shill like @TimDraper, but @ARKInvest 2021 Newsletter to institutional investors @CathieDWood pic.twitter.com/jEV4T1iVlD

— Michael Kapilkov (@mmviii_2008) January 26, 2021

The investors waited long for a fund to make an appearance in the US and they could have to wait even more if one fund manager says so. Cathie Wood, the CEO of the crypto-focused division of Ark Investment said in a recent appearance at the ETH trends Big ideas event that the market had quite a long way to go before it is able to be considered formidable on the US markets. As per Wood, the market cap has to reach at least $2 trillion for BTC or ETFs to even be considered by US regulators. This is about a 2000% increase from the $700 billion market cap that BTC managed to reach previously in the month. She continued:

 “The flood of demand has to be satisfied so it’s going to have to get well over a trillion dollars – $2 trillion, I think, before the [U.S Securities and Exchange Commission] will feel comfortable about a Bitcoin ETF.”

A few US companies tried to launch their Bitcoin ETFs that are regulated but they would only get rejected. At least three of these ETFs were rejected in one day in 2018 while one very hopeful pulled out of the race in 2019. Wood added that Gary Gensler who is the leader in the race of the new head of the US SEC under Biden’s administration has a favorable view market and could even introduce supportive policies for easier ETF launch.

Ark Investment CEO Cathie Wood, "SEC likely won't approve a bitcoin ETF until the cryptocurrency's market cap reaches $2,000,000,000,000."

So, next month then?

— Documenting ₿itcoin 📄 (@DocumentingBTC) January 27, 2021

She called Gensler “pro-Bitcoin” in addition to mentioning that the new SEC leaders will likely be more crypto-friendly than the previous Trump administration. In the meantime, her presentation contained a few price predictions for Bitcoin’s prices as well as for hedge funds, tech companies, and family offices making the way on to the market. Wood said that every S&P500 company, it is able to invest 1% of their treasury assets into BTC, the price will increase to $40,000.