Ark Invest CEO Cathie Wood Does Not Expect Most Spot BTC ETFs to Survive

Cathie Wood, American investor and CEO of Ark Invest, expects only three to four spot BTC ETFs to survive, asserting that most of them would either close down or consolidate to larger companies.

Wood recently made this statement while speaking on the spot Bitcoin ETF race in a Yahoo Finance interview. Notably, the approval of all 11 filings from asset managers such as Ark Invest, BlackRock, Grayscale, and Fidelity has triggered bullish sentiments among crypto proponents.

Amid the emerging elation, Wood, who also serves as Chief Investment Officer (CIO) at Ark Invest, shared her thoughts on the future of these investment products and Bitcoin’s price trajectory.

As all 11 spot BTC ETFs have begun trading on the open market, the discussion now shifts to the ones that would stand the test of time. 

“You hope that you will be one of the winners here. If you look at a year, five years from now, do you think there will be 11 spot Bitcoin ETFs, do you think some of them will have closed?” Julie Hyman, a Yahoo Finance anchor, asked Wood in an interview.

Wood: Not All Spot BTC ETFs Would Survive

In response, Cathie Wood noted that she does not believe the market will still witness the existence of 11 spot Bitcoin ETFs years from now. This response, while not in direct contrast, is less optimistic than Galaxy Digital CEO Mike Novogratz’s response to a similar inquiry on CNBC.

Novogratz insisted that the BTC ETF race would see multiple winners, as each product offers a unique value proposition. Note that both Ark Invest and Galaxy Digital had their spot BTC ETFs approved alongside the nine others this week.

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The Ark 21Shares Bitcoin ETF (ARKB) is the product of a partnership between Ark Invest and 21Shares, a Swiss-based asset manager. In addition, the Invesco Galaxy Bitcoin ETF (BTCO) is the product of a collaboration between Galaxy Digital and Invesco. 

Spot Bitcoin ETFs Could Reduce to 3

With all products in the market, offering investors a secured and regulated exposure to Bitcoin, Cathie Wood believes some products would be closed down in the years to come. Others, according to her, could get consolidated into larger companies.

In her words:

“I don’t think there will be 11 spot Bitcoin ETFs. Some may close. Some may be consolidated into bigger companies. The more pure play companies may be bought out by the larger players who need more of that expertise in-house.”

According to Wood, as more companies close their products or consolidate them into bigger firms, the number of spot BTC ETFs left could reduce to three or four. However, she believes the more probable number is three. “More likely three,” she concluded.

Notably, the idea of closure or consolidation could occur due to low adoption or reduced interest from market participants.

At this stage, interest and demand for these products have been high. The Crypto Basic reported today that cumulative trading volume for the products hit $4.3 billion on the first day of trading.