Ark Invest believes that Ethereum (ETH/USD) has the potential to change the financial services industry.
On Tuesday, Cathie Wood, the founder of Ark Invest, shared a research paper on X. This paper explains why the company thinks Ethereum and its staking yield are crucial for decentralized finance (DeFi). The paper highlights Ethereum as an “institutional-grade asset” that can generate income.
According to the paper, “Our research indicates that ETH is beginning to exhibit characteristics similar to U.S. Treasury bills.” Ark Invest also pointed out that ETH and its staking yield are becoming benchmarks in the digital asset market. They serve as reference points for evaluating other Layer 1 assets, their risk profiles, and potential returns.
Moreover, the paper notes that the network is creating “meaningful value” due to its large market capitalization and millions of active users each month. Right now, about 34.223 million ETH is staked in the network. That’s over 28% of the asset’s circulating supply, according to Staking Rewards. The average annual yield across the network is currently 3.46%.
This latest endorsement aligns with Wood’s earlier positive outlook on Ethereum. Earlier this year, at the Big Ideas investor conference, she predicted that Ethereum’s market capitalization could reach $20 trillion by 2032. This would mean a price of over $166,000 per token.
Interestingly, Ark Invest decided not to launch an exchange-traded fund (ETF) that directly invests in Ether. Instead, they are focusing on a spot Bitcoin (BTC/USD) ETF, known as the ARK 21Shares Bitcoin ETF (ARKB). Still, Wood’s recent tweet shows that Ark Invest is exploring ways to give investors exposure to Ethereum technology. They recognize its potential to reshape the financial services landscape.
As of now, Ether is trading at $2,614.69. This reflects a slight increase of 0.19% over the last 24 hours, according to data from Benzinga Pro.