Crypto’s Here to Stay—Wallet Growth Be Damned, Says Cathie Wood

Ark Invest’s CEO doubles down on crypto’s resilience—even if adoption metrics wobble.

The Unstoppable Force

Blockchain doesn’t care about your spreadsheet models. While traditional finance frets over wallet growth rates, Cathie Wood’s latest proclamation cuts through the noise: decentralized networks aren’t asking for permission.

Wall Street’s Cold Sweat

Funny how the same institutions that mocked Bitcoin at $5K now hire ’digital asset strategists’ at $500K salaries. Crypto keeps winning—whether bankers update their LinkedIn bios or not.

Love it or hate it, the genie’s out of the bottle. And as any finance bro knows, you can’t stuff disruption back into a Bloomberg terminal.

Crypto Wallet Adoption Versus ETF Convenience

Based on reports, about 200 million active Bitcoin wallets are in use worldwide. Yet, between May 17 and May 23, US spot Bitcoin ETFs saw nearly $2.70 billion in new money.

Bitcoin even hit a record high of $111,985 on May 22. People seem to trust ETFs more than setting up their own wallet right away. ETFs can live inside regular brokerage accounts, so you don’t need extra apps or backup phrases.

Rising ETF Inflows Since Launch

Spot bitcoin ETFs went live in the US in January 2024. Since then, they have drawn in roughly $44.50 billion, according to Farside data. In July 2024, spot Ether ETFs began, and so far they’ve attracted about $2.75 billion. That shows serious interest in both Bitcoin and Ether.

Yet Ether ETFs haven’t taken off as fast. The US Securities and Exchange Commission didn’t allow staking inside those funds, making them less appealing to some yield-seeking investors.

According to Wood, staking WOULD have made Ether ETFs more attractive. Staking lets you earn rewards by locking up coins. Without it, these ETFs are just holding the token, so they don’t compete with direct staking in the protocol.

On May 21, the SEC delayed a decision on adding staking to Bitwise’s Ether ETF. That MOVE could keep some investors on the sidelines until the rules change.

Wood also pointed to a stumble on Solana that may have spooked older investors. US President Donald Trump launched a memecoin called OFFICIAL TRUMP (TRUMP) on Solana on January 17.

It plunged about 50% just days later when no crypto-related orders appeared in his first days in office. That roller-coaster likely made some advisers think twice about Solana’s reliability.

Wood thinks crypto ETFs will remain an “insurance policy” for people worried about traditional markets. At the same time, they act as a bridge. She expects new investors to start with Bitcoin or Ether in ETFs and then move into wallets to explore things like smart contracts and other tokens.

ARK’s own price forecasts are bold. The firm raised its Bitcoin bull case to $2.50 million by the end of 2030. Wood says she’s still working on her solana target and will share it after more research.

Featured image from Unsplash, chart from TradingView