Cathie Wood, the CEO of ARK Invest, remains bullish on the durability of crypto exchange-traded funds (ETFs) amid increasing adoption of digital wallets. Speaking at the Solana Accelerate event in New York on May 23, Wood underscored the role of ETFs as pivotal stepping stones in the burgeoning crypto landscape—even as user-friendly wallets gain traction. “I think ETFs are an important stepping stone because, you know, wallets seem so complicated, so much friction for consumers, they just wanna push a button,” she remarked.
ETFs: A Bridge to Wallet-Based Adoption
Crypto ETFs have surged in popularity, with U.S.-based spot Bitcoin ETFs witnessing approximately $2.75 billion in inflows during the trading week ending May 23. This coincides with Bitcoin achieving a new zenith of $111,970 on May 22. Wood posits that ETFs provide a convenient entry point for investors who might find the complexity of wallets daunting. “So ETFs for those who want the convenience, I don’t think, will lose a lot of their luster,” she added. “But they will be a stepping stone into wallet-based.” As explored in Finance Redefined’s analysis, Bitcoin ETFs and government adoption are expected to drive BTC to $1 million by 2029, highlighting the long-term potential of these financial instruments.
The data tells a compelling story. Since the advent of spot Bitcoin ETFs in the U.S. in January 2024, they’ve attracted about $44.49 billion in inflows. Meanwhile, spot Ether (ETH) ETFs, which launched in July 2024, have drawn in around $2.77 billion. However, Wood notes that Ether ETFs haven’t met expectations, largely due to regulatory hurdles—namely, the U.S. Securities and Exchange Commission’s reluctance to permit staking.
The Role of Ether and Emerging Technologies
Despite these challenges, Wood views Ether as an essential gateway for new investors exploring smart contracts and the broader crypto ecosystem. “So they might start in the smart contract world with Ether, but once they study the technology, and follow the developers, and see the uptake by consumers, I think they will get there,” Wood stated. Her remarks suggest a nuanced understanding of how technological literacy and developer activity can drive crypto adoption.
The Solana network, which Wood also discussed, has faced its own set of challenges—particularly with the launch of the Official Trump (TRUMP) memecoin in January, which led to skepticism among institutional investors. “Institutions and you’re saying 60-year-olds…I think they might be a little turned off by what happened with the Trump memecoin,” Wood noted, highlighting the delicate balance between innovation and market perception.
Looking Ahead: The Future of Crypto Investments
ARK Invest’s forward-thinking strategies continue to influence the crypto investment landscape. In April, the firm raised its “bull case” Bitcoin price target from $1.5 million to $2.4 million by the end of 2030, driven by increasing institutional interest and Bitcoin’s growing status as “digital gold.” This optimism is echoed by analysts who predict a surge in Litecoin, as discussed in our recent coverage of SEC’s likely approval of a Spot ETF.
Wood is also working on finalizing her price target for Solana, signaling confidence in its potential despite recent market jitters. “I mean, that might scare them,” she said, referring to traditional investors’ hesitance towards newer cryptocurrencies. Yet, her optimism suggests that as the market matures, so too will its participants’ understanding and acceptance of diverse assets.
The narrative surrounding crypto ETFs and wallets is still unfolding, with questions remaining about how regulatory environments and technological advancements will shape the sector’s trajectory. But one thing seems clear: Cathie Wood’s vision of a crypto-integrated future—where ETFs and wallets coexist and complement each other—continues to capture the imaginations of investors worldwide.
Source
This article is based on: Crypto ETFs won’t lose ‘their luster’ as wallet adoption grows — Cathie Wood
Further Reading
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- US crypto groups urge SEC for clarity on staking
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
