ARK Investment Management, an American investment firm with $23.9 billion in assets under management spearheaded by star fund manager Cathie Wood, has predicted the price of the flagship cryptocurrency bitcoin ($BTC) could hit $1 million by 2030, while by then Ethereum’s ether ($ETH) could reach $180,000.

In a newly published report titled “Big Ideas 2022,” the U.S.-based investment firm asserted bitcoin’s global usage is still in its early days and predicted it will gain market share as a global settlement network. ARK’s research found that BTC’s cumulative transfer volume rose 463% last year, while its annual settlement volume surpassed Visa’s annual payments volume.

The firm sees technological advancements such as the Lightning Network and Taproot support BTC’s scaling efforts, improving its usability. ARK’s prediction is also based on increasing adoption. Analyst Yassine Elmandjra wrote in the report:

Bitcoin’s market capitalization still represents a fraction of global assets and is likely to scale as nation-states adopt it as legal tender. According to our estimates, the price of one Bitcoin could exceed $1 million by 2030.

ARK Invest, it’s worth noting, offers several actively managed exchange-traded funds and plans to launch a Bitcoin ETF product in the near future. The firm’s CEO Cathie Wood has predicted BTC’s scarcity will push its price higher as adoption grows.

As for Ethereum, ARK’s report suggests it has value as the default currency in the decentralized finance space, for non-fungible tokens, and other Ethereum-native applications that could take a substantial chunk of the global financial services market, which could hit $123 trillion by 2030.

Ethereum could, as a result, have a market cap of $20 trillion by 2030. ARK wrote:

According to our research, Ethereum could displace many traditional financial services, and its native token, Ether, could compete as global Money.

Taking Ethereum’s 120 million ETH supply into account and considering its 1 million coin burn per year prediction after a move to a Proof-of-Stake consensus algorithm, by then the cryptocurrency’s circulating supply could be 110 million coins, which would mean each token trades at $180,000.

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

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