Crypto ETFs won’t lose ‘their luster’ as wallet adoption grows — Cathie Wood

Cathie Wood, CEO of ARK Invest, believes crypto ETFs will remain economically significant despite growing crypto wallet adoption. She views ETFs as a crucial stepping stone for consumers, citing the perceived complexity and friction associated with wallets. Wood emphasized the convenience of ETFs, stating they won’t lose their appeal, but will serve as a pathway to wallet-based holdings. She considers wallets as insurance against traditional system failures.

Data indicates approximately 200 million active Bitcoin wallets globally. The week ending May 23 saw substantial $2.75 billion inflows into US spot Bitcoin ETFs, coinciding with Bitcoin’s all-time high of $111,970 on May 22. Since their January 2024 launch, US spot Bitcoin ETFs have garnered approximately $44.49 billion in inflows, while spot Ether ETFs have seen roughly $2.77 billion since July 2024.

Wood attributes the comparatively lower success of Ether ETFs to the SEC’s prohibition on staking, noting a delay in approving Bitwise’s application to include staking in its Ether ETF. Despite this, she sees Ether as a gateway for investors new to smart contracts, paving the way for exploration of other cryptocurrencies like Solana. She anticipates investors will transition to other assets after gaining experience with Ether’s smart contract technology.

Wood expressed concern that the launch of Donald Trump’s memecoin, TRUMP, on Solana might have negatively impacted investor sentiment towards Solana. The memecoin’s significant price drop shortly after its launch, coupled with the lack of crypto-related executive orders from President Trump, could deter investors, particularly older generations and institutions. She acknowledged the relative ease of explaining Bitcoin as “digital gold” compared to other cryptocurrencies.

Wood’s Solana price target remains under development, pending completion of research. In April, ARK raised its Bitcoin bull-case price target to $2.4 million by 2030, driven by institutional adoption and Bitcoin’s growing acceptance as digital gold.