During the SALT conference on Wall Street, the head of investment firm Ark Invest, Katie Wood, told CNBC that she believes Bitcoin is likely to grow tenfold over the next five years and surpass $ 500,000. However, she also stated that Ark Invest’s confidence in Ethereum has also “grown significantly.” And that’s why.
“Our Confidence in Ethereum Has Survived”
The reason for this, Wood explained, was the beginning of Ethereum’s transition from the Proof-of-Work (PoW) consensus algorithm to the Proof-of-Stake (PoS) algorithm. The transition began on December 1, 2020 with the launch of Ethereum 2.0 phase zero and, more recently, following the London hard fork on August 5.
As part of the EIP 1559 proposal, the London hard fork, among other things, allowed for lower transaction fees on the Ethereum blockchain, which helped make Ethereum a deflationary currency.
As previously reported, in early August, Katy Wood announced support for Ethereum and DeFi decentralized applications based on this blockchain.
Ark invests in ether through Grayscale
Among crypto assets, Ark has invested in the Grayscale Ethereum Trust (ETHE) – the company owns millions of dollars worth of ETHE shares. As of June 30, there were 721,936 ETHE in the investment fund, which at that time was worth $ 16.2 million.
According to CoinMarketCap, at time of publication, the second largest cryptocurrency, Ethereum, is changing hands at $ 3,324.