Absolutely Massive: This Next Wave Is 10x Bigger Than BlackRock - Cathie Wood & Matt Hougan

Summary

In a recent interview, ARK Invest CEO Cathy Wood reaffirmed her bull case prediction of Bitcoin reaching $1.5 million by 2027. She believes the massive institutional demand for Bitcoin, evidenced by the successful launch of spot BTC ETFs like ARK's, makes this target likely. Wood expects an even bigger explosion in demand once major brokerages approve and offer these ETFs. Other experts like Bitwise's CEO concur, predicting over $100k per BTC by 2024. With limited supply but growing interest, they argue too much capital is chasing too few coins, necessitating a surge in Bitcoin's price discovery.

Takeaways

• 😲 Cathy Wood predicts a massive 23% price explosion for Bitcoin in the next 36 months
• 👍 The spot Bitcoin ETFs have been very successful so far
• 🔥 Cathy expects an even bigger explosion when major brokerages approve the ETFs
• 📈 Merrill Lynch, Wells Fargo and Morgan Stanley are considering offering spot Bitcoin ETFs soon
• 🌟 This is evidence of the success of the bitcoin products launched just 2 months ago
• 🚀 Cathy predicts super exponential growth from converging technologies in the next 5-10 years
• 😎 Unlike the dotcom bubble, today's innovations have been developing for over 30 years already
• 🏦 People are scared of another tech bubble and sticking to benchmarks, missing the opportunity
• 💡 The building blocks for today's innovations were planted during the dotcom bubble era
• 💰 Other experts also predict $100k+ bitcoin prices when wirehouses fully embrace the ETFs

Q & A

What is Cathy Wood's prediction for the price of Bitcoin in the next 3 years?

Cathy Wood is predicting a massive 23% price explosion for Bitcoin within the next 36 months.

What is the current status of spot Bitcoin ETF offerings from major wirehouses?

Major wirehouses like Merrill Lynch, Morgan Stanley and Wells Fargo have begun offering spot Bitcoin ETFs to selected clients with brokerage accounts, on request or unsolicited basis. These firms are making an abrupt U-turn to offer these products within 2 months of their launch.

How successful have the recently launched spot Bitcoin ETFs been?

The spot Bitcoin ETFs have seen great success so far. For example, ARKB Bitcoin ETF by Cathy Wood's firm has $2.03 billion in assets and $1.56 billion in flow, making it the 3rd largest Bitcoin ETF by total flow in assets.

Why does Cathy Wood expect an explosion in demand when wirehouses start offering spot Bitcoin ETFs?

Cathy explains that wirehouses dominate the customer base for her firm. So when they start offering spot Bitcoin ETFs to their large clientele, it will lead to a huge explosion in demand.

What is Cathy Wood's comparison between current innovations and the early 1900s?

Cathy explains that the last time we had multiple innovation platforms evolving simultaneously like today was in the early 1900s, which transformed societies. She sees today's innovations as being like that but on steroids.

Why does Matt Hougan predict the next wave of institutional interest will push Bitcoin price over $100K?

Matt argues the current interest has largely been from retail, hedge funds and independent financial advisors. With wirehouses entering soon, we'll see huge institutional capital driving more demand than supply, pushing prices over $100K.

What was the seed sown in the dotcom bubble that is leading to current innovations as per Cathy?

Cathy argues that the technologies spearheading current innovations were first developed in the dotcom bubble era of 1990s. They have been maturing for over 20 years now and are ready for primetime adoption.

What does Cathy mean when she says innovations today are exponential but also 'super exponential'?

She means we'll not only see exponential growth rates of 15-25% as seen during dotcom bubble, but due to convergence of multiple technologies we'll see even faster super exponential growth rates in future.

Why does Cathy say investors are 'running for the hills' and benchmark hugging today?

Because of bad experiences in dotcom bubble and 2008 financial crisis, investors are scared of hype cycles in new technologies. So they are moving investments to benchmark assets perceived as safe.

What lead to the dotcom bubble bursting as per Cathy and how is it different from today?

In dotcom bubble, too much capital chased few opportunities too soon when the technologies were not ready. Today these technologies have had 20+ years to mature and are ready for mass adoption.