Cathie Wood's Ark Invest says this cryptocurrency ETF may rise 5,300%.  

Asset manager Ark Invest focuses on disruption. The company administers blockchain and cryptocurrency-themed exchange-traded funds (ETFs) under CEO Cathie Wood. Ark has long favored Bitcoin. It was the first public fund manager to enter the $200-trading cryptocurrency market in 2015. After nearly a decade, Bitcoin is worth $70,000, but Wood and her team predict significant investor upside.  

The company's 2023 Bitcoin valuation forecast predicted $1.5 million by 2030. It might rise over 2,000% from its current pricing. After the SEC allowed spot Bitcoin ETFs in January 2024, Ark secretly raised their target. Wood revealed that during Bitcoin Investor Day last month:  

Ark now thinks Bitcoin might hit $3.8 million by 2030, though Wood didn't specify. New goal upside exceeds 5,300%. Investors can take advantage of that by buying the recently approved spot Bitcoin exchange-traded fund iShares Bitcoin ETF (NASDAQ: IBIT).  

Why the iShares Bitcoin ETF matters The procedure of gaining direct Bitcoin exposure for U.S. investors was complicated and expensive until recently. They had to open and finance a bitcoin exchange account and pay high transaction fees. Coinbase charges 1.5% for simple trades. Investors who desired full ownership of their Bitcoin had to use a blockchain wallet.  

In January, the SEC approved spot Bitcoin ETFs, making things easier. These investment vehicles track Bitcoin prices without cryptocurrency exchanges, expensive fees, or specialized storage. A recent Ark report highlighted these benefits:  

The SEC has approved 11 spot Bitcoin ETFs that track Bitcoin prices. Issuer reputations and expense ratios are the main significant distinctions. The BlackRock iShares Bitcoin ETF may be suitable for investors. As the world's largest asset manager, BlackRock has a spotless reputation and the third-lowest fee ratio of 0.25%.  

Don't expect Bitcoin to hit $3.8 million. Ark Invest predicts spot Bitcoin ETFs will account for over 5% of institutional AUM. PwC expects institutional AUM to hit $145 trillion by 2025. Ark predicts $8 trillion in institutional Bitcoin investment using that calculation. Possible stretch.  

The debut of spot Bitcoin ETFs was successful. According to Bloomberg's Eric Balchunas, BlackRock and Fidelity's ETFs saw the most first-month inflows ever. The Wall Street Journal said that the BlackRock ETF reached $10 billion in assets the fastest.  

However, spot Bitcoin ETFs had only $57 billion in assets as of April 4, according to The Block. Even if institutional investors contributed every penny, which is unlikely, $8 trillion would require a 140-fold increase. Bitcoin is unlikely to reach $3.8 million soon.  

The iShares Bitcoin ETF is still worth buying for risk-tolerant investors. Bitcoin easily outperformed equities, bonds, gold, commodities, and real estate over five years. No matter when they bought Bitcoin, Ark Invest says investors who held it for five years have gained. That creates a good investment case.  

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