Cathie Wood: Crypto ETFs Will Endure Amid Wallet Adoption Growth

Cathie Wood, CEO of ARK Invest, believes crypto ETFs will remain essential even as wallet adoption grows. She argues wallets can be complex, making ETFs a user-friendly alternative. With substantial inflows into Bitcoin ETFs, she highlights that Ether ETFs have underperformed due to SEC restrictions. Wood views Ether as a stepping stone for new investors. Furthermore, she shared concerns about the impact of Trump’s memecoin on Solana’s reputation among institutions, while bullishly raising Bitcoin’s long-term price target.

Cathie Wood, the CEO of ARK Invest, has expressed confidence that crypto exchange-traded funds (ETFs) will retain their significance even as the adoption of crypto wallets expands. At the Solana Accelerate event in New York on May 23, she noted that wallets can often be too complex and cumbersome for consumers, who prefer a simpler interface. “ETFs serve as a crucial bridge,” she asserted. Wood believes the allure of ETFs remains intact, promising ease for those hesitant about navigating the intricacies of wallets.

Wood further described ETFs as an essential safety net for the traditional financial system, acting as an insurance policy against possible failures. This sentiment is bolstered by recent data showing around 200 million active Bitcoin wallets in circulation globally. In a noteworthy trading week ending May 23, Bitcoin ETFs in the US experienced inflows of about $2.75 billion, coinciding with Bitcoin hitting a record high of $111,970 on May 22.

Since the introduction of spot Bitcoin ETFs in the US in January 2024, a remarkable $44.49 billion has flowed into these funds, data from Farside shows. Conversely, spot Ether (ETH) ETFs, launched in July 2024, have accrued just $2.77 billion, which Wood attributed to regulatory hurdles, particularly the SEC’s refusal to permit staking. This delay on Bitwise’s application to add staking functionalities to its Ether ETF has dampened investor enthusiasm, according to Wood.

Despite these hurdles, Wood views Ether as a foundational asset for newcomers, suggesting it serves as an initial introduction to smart contracts. She believes that as investors engage with Ether and understand its technology, many will eventually look into other cryptocurrencies like Solana (SOL).

At the same event, Wood commented on the potential impact of the recent launch of US President Donald Trump’s memecoin, officially called TRUMP, on investor confidence in Solana. She suggested that this might be turning off some institutional investors and older demographics after the coin’s value plummeted by around 50% shortly after its introduction. Wood remarked on the need to simplify the narrative around Bitcoin as “digital gold” for these investors, while noting that other digital currencies can be trickier to explain.

As for Solana, Wood mentioned ongoing research to establish a price target and promised to release the findings once completed. In more bullish news for Bitcoin, ARK has increased its long-term price target from $1.5 million to $2.4 million by 2030, citing a growing trend of institutional investment and Bitcoin’s recognition as a form of “digital gold.”