Despite the collapse of FTX and the subsequent decline of the cryptocurrency market, the founder and CEO of Ark Invest – Cathie Wood – stands by her prediction that bitcoin will skyrocket to $1 million by 2030.
She also seems oblivious to Grayscale’s Bitcoin Trust (GBTC) price drop since her company bought an additional 176,945 shares.
BTC Bull regardless of reality
The shocking collapse of crypto exchange FTX has compounded the problems in the crypto sector and vaporized much of the investor interest. Even the most optimistic players in the industry believe that it will take a long time for the market to recover, while others don’t see it at all.
Cathie Wood of Ark Invest is not part of this club. In a recent interview for Bloomberg, it doubled down on its forecast that bitcoin would head towards $1 million per coin. In his opinion, such setbacks could be useful because they show what the worthwhile projects are:
“Sometimes you have to go through a crisis to see the survivors. The bitcoin comes out smelling like a rose.
Wood thinks the only downside to the calamity is reduced interest from major institutions. However, she believes they will soon realize the merits of the leading cryptocurrency and embrace it. Enthusiasm for BTC is expected to return in the next two years, meaning it will reach its milestone by 2030, the Ark Invest executive concluded.
She’s also bullish on ether, saying it could see massive institutional adoption in the years to come.
This isn’t the first time Wood has set such an ambitious price target for bitcoin. She joined Michael Saylor in April to predict that the asset will eventually exploit this milestone.
Ark Invest increases its exposure to GBTC
The valuation of GBTC shares has fallen significantly due to the ongoing crypto winter. They are currently trading at around $8.40, down 27% from last month’s figures.
Nonetheless, Ark Invest continues to expand its holdings and recently purchased over 176,000 shares worth around $1.5 million. A week ago, the entity purchased an additional $273,000 of stock. This came as a surprise as it happened amid severe market turmoil caused by the FTX disaster.
Grayscale’s GBTC is currently trading at a 42.7% discount to BTC spot prices. He set the biggest discount in the fund’s history on November 18, when the figure hit 45%.
GBTC is the largest bitcoin fund and manages over 635,000 BTC. As I write these lines, this amount is equivalent to nearly $10.5 billion.
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