Ark Invest CEO Cathie Wood believes Bitcoin (BTC) could reach $1.5 million by 2030 under her firm’s “bull case” scenario.

Wood made the comments during a CNBC interview on Jan. 11, which marks the first trading day for spot Bitcoin ETFs after they were approved by the SEC on Jan. 10.

The approval of Bitcoin ETFs, which are financial products that would allow investors to buy shares representing the digital currency, is seen as a major step towards mainstream adoption of Bitcoin.

ETFs increase bull case probability

Wood said that the SEC green light further increases the probability of the bull case for Bitcoin as it’s a major step toward mainstream adoption of the digital asset.

She also provided a more conservative estimate for Bitcoin’s future value with a base target price of around $600,000 by 2030. This would equate to a market cap of over $10 trillion.

The flagship asset’s market cap currently stands at just under $1 trillion, and proponents expect it to rise 10x over the coming decade to match the $12 trillion market cap of gold under the most conservative scenario.

On the other hand, Bitcoin’s market cap would have to climb to $21 trillion for one BTC to be worth $1 million and roughly $31 trillion for a $1.5 million price target.

According to a 2021 report from McKinsey & Company, global assets have grown from $440 trillion in 2000 to $1,540 trillion in 2020. This means Bitcoin would have to underpin less than 3% of global assets to hit a price of $1.5 million per coin.

Bitcoin is a safe haven

Wood said her confidence in Bitcoin primarily stems from its role as a hedge against both direct and indirect forms of wealth confiscation. She highlighted Bitcoin’s response to the recent U.S. regional banking crisis as a key indicator of its strength and resilience.

During this period, Bitcoin experienced a notable rally from $19,000 to $30,000, which Wood interprets as a clear sign of investor trust in Bitcoin as a safe-haven asset.

Wood also pointed to Bitcoin’s capped supply as a crucial factor in its defense against inflation, a feature that makes it a unique asset in the financial world.

This inherent resistance to inflation, combined with its potential as a hedge against counterparty risk in deflationary scenarios, positions Bitcoin as a versatile financial tool.

Wood’s sentiments are echoed by most industry experts, who have made similar forecasts about Bitcoin’s value. Fundstrat managing partner Tom Lee recently said he expects Bitcoin to hit $500,000 in the coming years, while Arthur Hayes believes we’re on track for $1 million per coin this cycle.