ARK Invest, led by Cathie Wood, is optimistic that a more favorable environment for cryptocurrencies will be created in the United States. This is associated with the new policies of President-elect Donald Trump.
This asset management company is currently operating the popular ARK 21Shares Bitcoin ETF (ARKB), which has a net asset value of $4.44 billion.
Will Digital Asset Companies Enter the Stock Market?
In a recent newsletter, ARK Invest expressed optimism that Trump's return to the White House will allow digital asset companies to go public and gain regulatory clarity.
"One possibility is... the IPO window for late-stage digital asset companies like Circle and Kraken will reopen...," as mentioned in a paragraph of the newsletter.
Stablecoin issuer Circle applied for a confidential IPO in January. However, in June, Barron's reported that the U.S. SEC expressed concerns about Circle's core product, which could delay or impact the company's listing.
Circle moved its headquarters to the U.S. in May, which was seen as an effort to strengthen market confidence.
According to Barron's, the SEC has raised concerns about the risks of stablecoins. The regulator remains cautious about these assets as the market continues to grow.
Another major cryptocurrency exchange, Kraken, is also preparing for an IPO. In June, Bloomberg reported that the company had raised $100 million in a pre-IPO funding round, indicating strong investor interest and confidence in the future. However, Kraken's public listing will largely depend on regulatory support and legislative progress.
Several cryptocurrency mining companies and the major cryptocurrency exchange Coinbase are already publicly traded in the U.S., setting a precedent for cryptocurrency companies to become publicly traded companies in the United States.
Will Cathie Wood's "3.8 Million Dollar" Prediction for 2030 Come True?
Additionally, ARK Invest has joined the list of those who believe the Trump administration will favor cryptocurrency-friendly policies. The asset management company believes that Trump's cryptocurrency blueprint could provide significant tailwinds for the digital asset industry, particularly by providing the necessary support amid ongoing regulatory challenges.
This optimistic outlook from ARK Invest includes the possibility of long-awaited legislative reforms, such as the Financial Innovation and Technology Act (FIT21) and the 2023 Payments Stablecoin Clarity Act. Passing these bills would establish clearer guidance and protections for digital assets and stablecoins in the U.S.
ARK's positive outlook is influenced by the hope of potential changes within the SEC under Trump. The company mentioned that the end of SEC Chair Gary Gensler's "regulation by enforcement" approach could alleviate some of the pressure currently faced by cryptocurrency companies.
ARK's position aligns with the industry's main voice, which supports clear regulation over punitive measures. The general view is that this would create a newer and more competitive environment for U.S.-based cryptocurrency companies.
Cathie Wood, a well-known Bitcoin advocate, has consistently maintained high expectations for cryptocurrency growth. Recently, she supported Wyoming Senator Cynthia Lummis' proposal to establish a U.S. strategic Bitcoin reserve, an idea that was also endorsed by President-elect Trump during his campaign.
Wood has previously made an ambitious forecast that Bitcoin could reach a value of $3.8 million by 2030. According to her, institutions only need to "allocate 5% of their portfolio to Bitcoin."
Many view this price target as idealistic. Nevertheless, Wood's support reflects her long-term trust in Bitcoin and the broader cryptocurrency ecosystem.
ARK Invest's outlook for a more cryptocurrency-friendly regulatory environment in the U.S. emphasizes their belief in the economic and technological potential of digital assets. If the Trump administration meets these expectations, it could indeed be a turning point for major players like Circle and Kraken, allowing them to play a leading role in bringing digital assets into the mainstream U.S. financial system.
