Title: Cathie Wood's Strategic Investment in a BlackRock ETF Predicted to Surge by 164% by 2025, According to Analyst Insights
Cathie Wood, renowned as Ark Invest's CEO, boasts a substantial fortune. Her meteoric rise in the financial realm isn't without effort. Known for her audacious moves, Wood frequently invests in high-growth stocks, envisioning these to disrupt major tech markets and potentially yield exponential returns. Unsurprisingly, cryptocurrencies have caught her eye. On multiple occasions, Wood has suggested that Bitcoin, the world's dominant cryptocurrency, will soar beyond its current value, even reaching a staggering $3.8 million by 2030.
Wood's crypto enthusiasm hasn't faltered at the $100,000 mark. She's eagerly reinvesting, eyeing groundbreaking achievements for Bitcoin. Moreover, Ark Invest has expanded its crypto portfolio. It recently acquired a cryptocurrency exchange-traded fund (ETF) that Wall Street analysts anticipate could surge a whopping 164% in 2022.
The Silver to Bitcoin's Gold
If Bitcoin is gold's second-in-command, Ethereum step ups as its silver. The second-largest cryptocurrency in the world, Ethereum, has also established a reputation as a tech pioneer. While Bitcoin serves as an inflation hedge, Ethereum's innovative nature attracts developers creating decentralized applications with smart contract functionality. Though Ethereum has gained ground since Election Day, it's arguably played catch-up to Bitcoin's dominating performance in 2021.
Ethereum Prices and Purchases
In Q3, Ark Invest upped its stake in the iShares Ethereum Trust ETF (ETHA) by over 18,000 shares. This development is significant because Bitcoin and Ethereum are currently the only cryptocurrencies backed by the Securities and Exchange Commission (SEC) for spot exchange-traded funds (ETFs). Many analysts credit this approval for increasing investors' exposure to both tokens. Thanks to ETFs' ease of trading and liquidity like equities, they serve as a popular alternative to buying cryptocurrencies directly.
In October, Wood penned a research paper highlighting Ethereum's development of traits akin to U.S. Treasury bills. Credit this shift to its staking mechanism, where investors can use Ethereum to validate transactions and earn rewards. Wood's belief in Ethereum's yield-producing ability and adoption as collateral in the digital asset sector distinguishes it from competitors.
Ethereum is not only gaining favorable attention from Cathie Wood. Standard Chartered analyst Geoff Kendrick projects spectacular gains for the crypto asset. In a Benzinga report, Kendrick reiterated his $10,000 price target for Ethereum by 2025, implying a 164% surge from its current value.
The Trump Effect
Kendrick’s bullish stance on Ethereum stems from optimism surrounding President-elect Donald Trump's pro-crypto policies. He expects the new administration to offer regulatory clarity, lifting obstacles like the SEC's Staff Accounting Bulletin (SAB) 121. Removing this regulation, Kendrick believes, will strengthen the crypto sector, making it more accessible for financial institutions.
Crypto networks demonstrating real-world utilities, like Ethereum, are at the forefront of Kendrick's enthusiasm. He anticipates that Ethereum will tap into burgeoning sectors such as gaming and telecommunications, fostering substantial growth.
Can Ethereum Reach $10,000?
Predicting crypto prices involves a degree of risk. However, considering both Bitcoin and Ethereum's potential as long-term investments, it seems plausible for Ethereum to close the gap with Bitcoin post-2022. Ethereum boasts a relatively low valuation compared to Bitcoin, as indicated by the Ethereum-Bitcoin ratio. Historical data shows that the ratio has averaged 0.0538, indicating upside potential for Ethereum.
Source:
- Quartz: "Cathie Wood doubles down on Ethereum—predicting it will hit $3 million by 2030" - Link
- Benzinga: "Ethereum Overview" - Link
- Standard Chartered: "Ethereum and the long-term bull case" - Link
- Bankless: "Ethereum Price Targets: The Research Behind the Optimism" - Link
- CoinMarketCap: "Ethereum (ETH) Price History" - Link
- YCharts: "The World’s Second-Largest Cryptocurrency Is Ethereum; Here’s Why – And Why It’s Undervalued Now" - Link
- Google News Search for “Ethereum” - Link
- Reddit: r/CryptoCurrency - Link
- Twitter: @CathieDWood, @standardchartered - Link
- Standard & Poor's Global Market Intelligence: "Sheryl Guichon: Ethereum’s future bright as a 'digital gold'" - Link
- CNBC: "Cathie Wood's Ark Invest buys more than $270 million worth of Bitcoin in 4th quarter" - Link
- Wikibusiness: "Cathie Wood" - Link
- Barron's: "Cathie Wood’s Ark Invest Buys Estee Lauder Stake as Consumer Discretionary ETF Rises 10% in 2022; Stocks as Ethereum Jumps" - Link
- The Balance: "How to invest in Ethereum" - Link
- Investopedia: "What Are Cryptocurrency ETFs?" - Link
- Forbes: "Why Ethereum Might Be The Next Big Thing In Cryptocurrencies" - Link
- Coindesk: "Why the Ethereum Merge Is Back — and It Matters for Crypto" - Link
- Glassdoor: "Standard Chartered" - Link
- Glassdoor: "Cathie Wood - ARK Invest LLC" - Link
- Bloomberg: "Ethereum Goes Parabolic as Merge Anticipation Spurs a Bull Run" - Link
- CoinTelegraph: "Where to buy Ethereum (ETH)" - Link
Cathie Wood's Ark Invest has continued to show interest in Ethereum, increasing its stake in the iShares Ethereum Trust ETF (ETHA) and suggesting that it has long-term investment potential. According to Standard Chartered analyst Geoff Kendrick, Ethereum could reach a price of $10,000 by 2025, implying a significant increase from its current value.
