NOIDA (CoinChapter.com) — The launch of spot Bitcoin ETFs was a landmark move for the crypto sector, allowing users exposure to the token without buying it. ARK Invest CEO Cathie Wood believes that the move might establish the digital gold narrative that attracted many to BTC.
In a conversation with Brett Winton, the chief futurist at ARK Invest, Wood discussed the increasing investor interest in Bitcoin. The ARK Invest CEO noted that Bitcoin investment products would likely continue to attract investors, especially “now that there is a less friction-filled way to access Bitcoin.“
Cathie Wood’s Views on Bitcoin And Gold
Moreover, Wood drew parallels between Bitcoin and gold, stating that both assets can act as “risk-off” investment options when the banking sector faces weakness. To emphasize, the pro-crypto CEO highlighted the US banking crisis of March 2023, when BTC prices surged over 40%.
Cathie Wood has always been a vocal supporter of Bitcoin, positing it as a major catalyst in the redefinition of asset classes. The ARK Invest chief believes spot Bitcoin ETFs might speed up the mainstream acceptance of cryptocurrencies.
Wood argues that spot Bitcoin ETFs, by offering a regulated and accessible investment vehicle for Bitcoin, could enhance its attractiveness to a broader range of investors, thereby reinforcing its narrative as ‘digital gold.’
Relative to gold, Bitcoin has been rising. There’s now a substitution into Bitcoin and we think that is going to continue now that there is a less friction-filled way to access Bitcoin
Cathie Wood said
Moreover, the launch of spot Bitcoin ETFs helps cement the token’s position as a hedge against inflation and currency devaluation. The Ark Invest CEO sees these developments as key to Bitcoin reclaiming its status as a digital gold, a narrative with which the digital token began its journey.
Bitcoin Slowly Reclaiming Its Digital Gold Status
The introduction of spot Bitcoin ETFs could be a pivotal moment for BTC, similar to the launch of Gold spot ETFs in 2004. Gold ETFs helped increase investment in the precious metal by providing easy and liquid access to gold without the need to own physical assets.
Since their inception, gold prices have seen significant appreciation, underscoring its role as a stable investment and hedge against economic uncertainty. On the other hand, Bitcoin’s volatility has been detrimental to securing its digital gold narrative.
Yet, spot ETFs allow a relatively safer route to gain exposure to the token, negating some impact of Bitcoin’s inherent volatility.
Furthermore, a recent Fidelity report highlighted Bitcoin’s growing correlation with gold in 2023, decoupling from its previously inverse relationship with interest rates despite global rate hikes. The one-year rolling correlation between Bitcoin and gold is at an all-time high, with a score of 0.80.
Gold’s steady growth and resilience in times of economic turmoil often contrast with Bitcoin’s more volatile trajectory. However, the growing interest in Bitcoin ETFs reflects a growing confidence in its long-term value.
Analysts predict that U.S.-listed spot Bitcoin ETFs could see assets reach around $50 billion within two years. Moreover, Fidelity predicts that investors allocate more of their investment to Bitcoin. The report stated that the allocation could come as a replacement for gold or “as a complement to it.“
Furthermore, Fidelity’s research claimed that spot Bitcoin ETFs could strengthen the token’s digital gold narrative. Additionally, the regulatory approval of ETFs helps broaden investor access while lending some clarity to the legal status of BTC.
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