Ark Invest Holdings: Ethereum Prediction
All eyes were on Ark Investment Management today after the release of a report claiming Ethereum could reach $180,000 by 2030.
Famed crypto investment fund Ark Investment Management released details today claiming that the market value of Ethereum could reach $20 trillion by 2030. Such a massive market cap would mean an individual Ethereum price of anywhere between $170,000 and $180,000.
The new report from the investment fund supports the claims, by stating that it all depends on the amount of market share Ethereum manages to capture from traditional finance through DeFi.
$1 million Bitcoin?
Decentralised Finance, or DeFi for short, is the area of cryptocurrency that is currently creating more efficient, more transparent, and more reliable applications which aim to disrupt the legacy financial system. The total value of the DeFi market today is $108.5 billion and growing, with the Ethereum network currently accounting for around 70% of all DeFi transactions. If Ethereum can maintain or increase this market share in the next 8 years while traditional financial systems wake up to the cost benefits of DeFi protocols, then anything is possible.
The report also suggested that if Bitcoin can continue to ‘scale as nation states adopt as legal tender then the price of one Bitcoin could exceed $1 million by 2030.’ These are bold claims from Ark Invest, but as we all know are not unheard of in the cryptocurrency space. Only last month Michael Saylor, CEO of Microstrategy, made the claim that Bitcoin would hit $1 million in the next 10 years. Microstrategy backed up their confidence with another purchase of Bitcoin taking their total holdings to 121,044 which at current prices is worth $4.4 billion.
Ark 21 Shares ETF
Ark Investment Management were in the news again yesterday, as the US based SEC stated that any decision on a futures Bitcoin ETF would be delayed an extra 60 days from the beginning of February. Ark Invest together with 21 Shares had made the application to launch a futures backed Bitcoin Exchange Traded Fund (ETF) back in June 2021.
The ruling from the SEC pushes the decision deadline back to April 3rd stating that it was ‘appropriate to designate a longer period’ as a proposed rule change regarding Bitcoin ETFs would impact their decision. Ark and 21 Shares will be relieved to know that April 3rd will be the final date for a decision, as the SEC will be unable to deliberate any further from this date.
A Step in The Right Direction
With more and more investment funds looking to create Bitcoin ETF’s it can only be a positive for the continuing legitimacy and development of the cryptocurrency market. Although not quite a physically backed Bitcoin ETF, futures-based investment funds are a step in the right direction. If cryptocurrencies can continue to gain mainstream exposure and financial legitimacy, then Ark Investment’s claim of a $1 million Bitcoin by 2030 may not seem so far away.
Author: Mark Harridge
Mark Harridge first came across Bitcoin and began to use its peer-to-peer payment network in mid to late-2011. He quickly understood that this technology would change the world. Mark is passionate about crypto adoption, from a macro economic and institutional perspective, and the numerous factors that fuel the relentless march towards individual self sovereignty and the decentralised society of the future.