Competition is set to heat up for the popular Grayscale Bitcoin Trust once the Securities and Exchange Commission approves a spot bitcoin ETF in the U.S. The trust, known better by its ticker GBTC , may be the easiest way for institutions to get exposure to crypto today, but that’s likely to change in a big way once at ETF is approved, ARK Invest CEO Cathie Wood told CNBC Pro. “We had to own a security, so the only way we could [buy into bitcoin] … was through GBTC and that became the most liquid way to gain exposure,” she said on the latest PRO Talks on Tuesday. “We think that’s going to change completely. There are going to be lot more liquid ways to gain exposure when we see some of these approvals.” ARK in partnership with 21 Shares is in a long line at the SEC to get its application to launch a spot bitcoin ETF approved. It would be the first product of its kind in the U.S., though similar products exist already in Canada and Europe. It would also compete with GBTC, of which ARK is a big holder. Grayscale has been fighting with the SEC to convert GBTC into an ETF. Many investors expect an ETF approval in the U.S. to usher a wave of new investors into crypto and help send prices higher. “I’m sure some investors have taken positions in anticipation saying institutions are just going to push this up,” Wood said. “We’re at roughly 19.5 million units of bitcoin out there and the top is going to be 21 million. So if there’s going to be scarcity value and if institutions start pushing in, the price could go parabolic.” However, she warned, “when you get a lot of anticipatory investing like this sometimes you don’t get that right away. There could just be profit-taking especially if it settles down a bit.” The drumbeat for a bitcoin ETF has been growing louder since this summer. More recently, reports of better cooperation by the SEC with the funds attempting to launch an ETF has has helped propel the price of bitcoin higher – an event benefiting much of the crypto market. “We were very happy to get questions from the SEC, having filed a number of times and been rejected out of hand,” Wood said. “Getting questions was a big step forward. We have gotten to know the research team at the SEC and we’re very impressed … so we look forward to getting questions from them on the spot ETH ETF as well.” Bitcoin doubled for the year on Oct. 24, giving a lift to crypto-related stocks and other cryptocurrencies. This week, ARK sold $6 million of GBTC shares, which Wood cited as a routine profit-taking event.
