ARK Invest founder Cathie Wood appeared in the CEO’s podcast’s diary, saying that in January 2024, the “Green Light” approved funds for the on-site currency exchange exchange trading, just opening the door to what she calls “Institutional Land Luce”. She told host Steven Bartlett, who added: “Institutions hardly started to commit.” They controlled “trillions of dollars” but were almost only able to get “one hundred million dollars in new supply” because only one million bitcoins are still available for mining.
Why Cathie Wood Eyes $1.5 million per Bitcoin
Wood constructs a mismatch of supply and demand in distinct macroeconomic terms. According to Bitbo’s chain chain TREF Tracker, the U.S. ETF alone has vacuumed more than 1.2 million coins (about 5.7% of the final supply) 18 months ago, as BTC already exists. Daily streaming data show that funds like BlackRock’s IBIT and ARK-21Shares’ ARKB can collectively absorb tens of millions of dollars worth of Bitcoin, occasionally draining hundreds of coins from the open market at a single meeting.
“The SEC’s decision effectively legalizes Bitcoin into an asset class,” Wood said. Trust pressure will force large wealth managers to focus on early adopters. She compared the current migration to the adoption of index funds in the early 1990s: Once a blue-chip pension moves, “others have to consider it” or risk underperforming. Wood points to his own company’s experience – ARK has bought GBTC for the first time for about $250 per coin, Wood says traditional finance skepticism often marks the “best spot” for long-distance investors.
Wood’s long-term paper is clear currency. She cites her mentor Arthur Laffer, who called Bitcoin a “rules-based global monetary system we have been waiting for since the U.S. closed its gold window in 1971.” She believes that since Bitcoin’s algorithmic issuance schedule is not affected by fiscal or political tampering, she believes it will attract central bank reserves and corporate finance departments in jurisdictions where it has long devalued local currencies due to policy errors. She believes that this dynamic is accelerating: “Emerging market savers need insurance policies”, and for young accomplices, “digital gold” is already more intuitive than gold bars.
ARK’s revised base case model is now targeting $1.5 million per bitcoin by 2030, which is more than 15 times the price today. Wood said the three largest “building blocks” are institutional portfolio allocation, millennials and Z Gen-Z reserve demand and adoption of grassroots in inflation economies through Stablecoin Rails. She noted that the current forecasts do not assume the wholesale shift in sovereign reserves, nor do they have secondary demands for modeling loans for Bitcoin deductions, which she believes can be upgraded if deficits and debt costs continue to climb.
Wood also linked Bitcoin’s attraction to a broader macro backdrop of fiscal pressures and eased confidence in the Fiat regime. “Government spending is taxation, both now and through inflation,” she said. Warning that the ongoing deficit threatens the dollar’s reserve currency state, thus enhancing the charm of the non-political ledger secured by “the world’s largest computer network.” Although she acknowledges Bitcoin’s volatility, Wood believes that the maturity of derivatives markets and the maturity of ETF depths have weakened extreme price volatility.
Now, with the on-site Bitcoin ETF controlling inventory held by Satoshi-er era wallets, Wood believes the supply shock has just begun. “There is no mechanism to produce more than 21 million coins,” she told Bartlett. “If the agency wants to expose, the price will have to be adjusted.” The exact drama is still the $1.5 million issue, but Wood’s warning is clear: the slowest animals may find that they are trying to buy something that the market is no longer easy to supply.
At press time, BTC was trading at $107,200.
Featured Images created with dall.e, Charts for TradingView.com
Editing process For Bitcoin experts, focus on thorough research, accurate and impartial content. We adhere to strict procurement standards and each page is diligently evaluated by our top technical experts and experienced editorial team. This process ensures the integrity, relevance and value of our content to our readers.
