Cathie Wood: Crypto ETFs Will Stay Relevant Despite Wallet Adoption Surge
At the recent Solana Accelerate event in New York, ARK Invest CEO Cathie Wood reaffirmed her confidence in the enduring relevance of crypto ETFs (exchange-traded funds), even as the adoption of self-custody crypto wallets is expected to grow over the next decade.
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“ETFs are an important stepping stone,” Wood told Bloomberg ETF analyst Eric Balchunas during their May 23 fireside chat. “Wallets seem so complicated, so much friction for consumers—they just wanna push a button.”
Crypto ETFs Offer Simplicity, Wallets Offer Security
Wood acknowledged that while wallets offer a critical “insurance policy” in the crypto ecosystem—serving as a safeguard against failures in traditional financial systems—most retail users still find them intimidating. In contrast, crypto ETFs allow users to gain digital asset exposure with minimal friction, maintaining their convenience-driven appeal.
“ETFs for those who want the convenience, I don’t think, will lose a lot of their luster,” she added. “But they will be a stepping stone into wallet-based [adoption].”
Cathie Wood spoke to ETF analyst Eric Balchunas at Solana Accelerate on May 23. (Source: Solana)
Her comments come at a time of record-breaking activity for crypto ETFs. U.S.-based spot Bitcoin ETFs saw a whopping $2.75 billion in inflows in the trading week ending May 23, coinciding with Bitcoin hitting a new all-time high of $111,970. Since their launch in January 2024, spot Bitcoin ETFs have attracted approximately $44.49 billion, according to Farside data.
Ethereum ETFs Falter on Staking Exclusion
Wood also discussed the performance of recently launched spot Ethereum ETFs, noting that they have underwhelmed expectations, having only attracted $2.77 billion since their debut in July 2024.
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Nonetheless, Wood emphasized Ethereum’s strategic role in helping new investors understand the value of smart contracts before they venture into other ecosystems like Solana.
“They might start in the smart contract world with Ether, but once they study the technology, and follow the developers, and see the uptake by consumers, I think they will get there,” she said, hinting at further upside potential for alternative Layer-1 platforms.
Solana Still in Focus—But Institutional Skepticism Lingers
Despite speaking at a Solana-themed event, Wood admitted that the Solana blockchain has a perception issue among older or more conservative institutional investors—largely due to the launch and subsequent price plunge of President Donald Trump’s meme coin, TRUMP, in January.
Trump meme coin price chart (Source: CoinMarketCap)
“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,” Wood said. The coin lost about 50% of its value shortly after launch, following Trump’s lack of crypto-focused executive action.
Balchunas contrasted Bitcoin’s straightforward narrative as “digital gold” with the complexity of explaining newer blockchain ecosystems to advisors and institutional gatekeepers. Wood agreed, though she hinted that her research team is currently finalizing a Solana price forecast, which will be published once completed.
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ARK’s Bullish Bitcoin Thesis Remains Firm
In April, ARK Invest raised its “bull case” Bitcoin price target from $1.5 million to $2.4 million by 2030, citing accelerating institutional adoption and Bitcoin’s growing status as a macroeconomic hedge. This bullish long-term vision is central to ARK’s broader thesis that crypto assets will integrate deeply into both retail and institutional portfolios, whether it be through crypto ETFs or another investment vehicle.
With around 200 million active Bitcoin wallets globally (per Bitbo), and the rapidly expanding footprint of both Bitcoin and Ethereum ETFs, Wood’s dual-track view of the future—where both ETFs and wallets coexist—continues to shape the narrative of mainstream crypto adoption.
