Speaking at the Solana Accelerate event in New York on May 23rd, Wood explained why ETFs are likely to continue serving an essential role for mainstream investors despite the growing popularity of self-custody solutions.
At the event, Cathie Wood emphasized that ETFs act as a gateway for many consumers entering the crypto space for the first time. While crypto wallets offer direct control and decentralized storage, their complexity can be a major barrier for average users.
Cathie said:
“I think ETFs are an important stepping stone because wallets seem so complicated, so much friction for consumers. They just want to push a button and enter this space.”
This ease of access is a major reason why Wood doesn’t expect ETFs to fade away, even if wallet technology improves dramatically in the future.
Cathie Wood Discussing Crypto ETFs With Eric Balchunas
Source: Solana
While ETFs provide convenience, Wood pointed out that crypto wallets offer something even more critical: security.
She said:
“These wallets are insurance policies against something going wrong in the traditional world. They still have a place for those concerned about counterparty risk or centralized failures.”
According to Bitbo, there are currently around 200 million active Bitcoin wallets in use globally.
During the week ending May 23rd, U.S.-based spot Bitcoin ETFs saw approximately $2.75 billion in inflows, coinciding with Bitcoin reaching a new all-time high of $111,970 on May 22nd.
This surge in demand highlights the role of ETFs in enabling broader access to the crypto market, particularly among institutional and retail investors who prefer regulated financial instruments.
Since their debut in January 2024, spot Bitcoin ETFs in the U.S. have recorded a staggering $44.49 billion in total inflows, according to data from Farside.
In contrast, spot Ether ETFs, which launched in July 2024, have brought in only $2.77 billion in inflows so far. Wood attributed the lower-than-expected performance to regulatory constraints.
She said:
“They were less successful than people were expecting. If I had to guess, I would point to the SEC’s refusal to allow staking as a significant limiting factor.”
The U.S. SEC recently delayed a decision on Bitwise’s application to add staking functionality to its Ether ETF, further dampening enthusiasm around the offering.
One topic that surfaced during the discussion was the launch of the $TRUMP meme coin on Solana earlier in the year. The meme coin debuted in January but quickly plummeted by 50% after the U.S. President failed to issue any crypto-related executive orders upon launch.
Wood acknowledged that this event may have negatively influenced institutional perceptions of Solana, saying:
“Institutions and you’re saying 60-year-olds… I think they might be a little turned off by what happened with the Trump meme coin.”
This comment aligned with Eric Balchunas’ point that Bitcoin is easier for older investors to understand as “digital gold,” whereas others like Solana may require more effort to grasp due to their complexity and association with trends like meme coins.
Wood concluded the session by reaffirming her bullish stance on Bitcoin.
In April, ARK Invest raised its Bitcoin bull case price target from $1.5 million to $2.4 million by 2030, citing increasing institutional adoption and Bitcoin’s role as a digital store of value.
ARK’s Price Targets For Bitcoin Till 2030
Source: ARK Invest
When asked about Solana, Wood noted that she is still finalizing her long-term price target for the asset and will share her insights after completing further research.
Cathie’s remarks highlight a critical insight, namely that accessibility and security can work together. While wallets offer autonomy and security, ETFs provide familiarity and ease of use, especially for new or risk-averse investors.
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