Cathie Wood is reportedly worth hundreds of millions of dollars. Ark Invest’s CEO did not arrive overnight. Wood is known for making bold investments, often buying high-growth stocks that she believes can be multibaggers by disrupting huge technology markets. One asset class Wood isn’t shying away from is cryptocurrency. Wood has predicted that repeatedly Bitcoin(CRYPTO: BTC)The world’s largest cryptocurrency, will eventually be worth many multiples of what it is today. With Bitcoin valued at over $100,000, Wood is doubling down and predicting Bitcoin will reach $3.8 million by 2030. Wood is also expanding her crypto investments. Ark recently bought a cryptocurrency exchange-traded fund (ETF) that one Wall Street analyst thinks could shoot 164% higher next year. Let’s see.
If gold has silver, so does Bitcoin Ethereum(CRYPTO:ETH). Ethereum is the second largest cryptocurrency in the world and, like Bitcoin, is seen as one of the pioneers of the sector. While Bitcoin is seen as a hedge against inflation, Ethereum is the go-to network for developers building decentralized apps with smart contract functionality. Ethereum has performed well since Election Day, but has also played second fiddle to Bitcoin, which has outperformed by a wide margin this year.
Bitcoin price chart
Bitcoin price data by YCharts
In the third quarter, ARK bought just under 19,000 shares of the company iShares Ethereum Trust ETF(NASDAQ: ETHA) Through BlackRock. Bitcoin and Ethereum are the only two cryptocurrencies that the Securities and Exchange Commission (SEC) has approved for spot exchange-traded funds (ETFs), which many believe have increased exposure to both tokens. ETFs are highly liquid and trade like stocks. Therefore, many consider them an easier financial instrument to trade than purchasing cryptocurrencies directly.
In October, Wood (on earn. Wood thinks Ethereum’s ability to generate returns and be used as collateral in the digital asset sector will set the token apart.
Wood is not the only expert who is positive about Ethereum. Standard chartered Analyst Geoff Kendrick also sees significant upside potential heading into 2025, according to Benzinga. In early November, Kendrick reiterated his 2025 price target for Ethereum at $10,000, which implies an upside of 164% from current levels (as of December 11). Kendrick is optimistic about new President Donald Trump’s pro-crypto policies, which he expects will help the entire industry.
First, Kendrick believes a Trump administration will bring regulatory clarity to the industry and remove roadblocks like the SEC’s Staff Accounting Bulletin (SAB) 121. SAB 121 requires financial institutions holding crypto assets on behalf of their customers to deviate from normal accounting and record them as liabilities on their balance sheets, which also requires an offsetting asset recorded at fair value. This leads to higher regulatory capital and liquidity requirements for banks, making them less likely to offer crypto custody services. If this rule is lifted, the crypto environment should be more favorable.
Kendrick is also optimistic about crypto networks with practical applications such as Ethereum. These networks should eventually be able to tap into sectors like gaming and physical infrastructure like transportation and telecommunications, all of which are in their early stages, Kendrick wrote in his note.
Predicting price targets is a difficult task in a stable asset class, let alone in a volatile asset class like crypto. However, I think Bitcoin and Ethereum are good long-term assets that investors can have at least some exposure to. I also think Ethereum can close the gap with Bitcoin over time as it trades at a low value against Bitcoin. The Ethereum-Bitcoin ratio is approximately 0.0376 (as of December 11). The ratio dates back to 2020 and averaged 0.0538, so I think this suggests an upside for Ethereum over time.
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Bram Berkowitz has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool recommends Standard Chartered Plc. The Motley Fool has a disclosure policy.
Multi-millionaire Cathie Wood is buying a BlackRock ETF that could rise 164% by 2025, according to this Wall Street analyst, originally published by The Motley Fool
