Ark Invest, led by CEO Cathie Wood, is renowned for its focus on disruptive innovation. The firm manages thematic exchange-traded funds (ETFs) centered around various technologies, including blockchain and cryptocurrency.
Being bullish on Bitcoin (CRYPTO: BTC) since 2015, Ark was the first public fund manager to gain exposure to the cryptocurrency when it was trading around $200. Now valued at $70,000, Bitcoin’s price has soared, but Wood and her team anticipate even greater returns for investors.
Price of $1.5 Million by 2030
In 2023, Ark published a Bitcoin valuation model projecting a price of $1.5 million by 2030, suggesting over 2,000% potential upside. However, after the SEC approved spot Bitcoin ETFs in January 2024, Ark revised its target higher. Wood revealed this at the Bitcoin Investor Day conference, stating that Bitcoin could potentially reach $3.8 million, exceeding 5,300% upside, though no specific time frame was provided.
To capitalize on this potential, investors can consider the iShares Bitcoin ETF (NASDAQ: IBIT), a recently approved spot Bitcoin exchange-traded fund.
Previously, gaining direct Bitcoin exposure was complex and expensive for U.S. investors, requiring them to create and fund accounts with cryptocurrency exchanges, often incurring high commissions. However, with the SEC’s approval of spot Bitcoin ETFs, investors can now track Bitcoin’s price without the hassle of exchanges, high fees, or specialized storage solutions.
The iShares Bitcoin ETF from BlackRock stands out, boasting the third-lowest expense ratio of 0.25% and benefiting from BlackRock’s esteemed reputation as the world’s largest asset manager.
While Ark Invest is optimistic about spot Bitcoin ETFs capturing over 5% of institutional assets under management (AUM), estimating an $8 trillion allocation to Bitcoin from institutional investors, this prediction may be overly ambitious.
Nevertheless, the iShares Bitcoin ETF remains an attractive option for risk-tolerant investors. Bitcoin has outperformed various asset classes over the past five years, making it a compelling investment for those willing to take on the risk.
