Bitcoin, Ethereum Could Soon Help You Get A Mortgage Now — Cathie Wood’s Ark Invest Sees $12 Trillion Opportunity After FHFA Move
Ark Invest, a leading investment management firm led by Cathie Wood, has highlighted a pivotal development set to bridge the world of blockchain-based capital with the substantial U.S. mortgage market.
What Happened: According to Nick Grous, an associate portfolio manager at Ark Invest, the recent directive from the Federal Housing Finance Agency (FHFA) instructing Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC) to consider cryptocurrency holdings, such as Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), for mortgage loan risk assessments marks “crypto’s first step into U.S. housing: from wallets to mortgages.”
“This directive introduces a novel bridge between blockchain-based capital and the $12 trillion U.S. mortgage market,” Grous notes.
Looking at the potential scale, Grous references iEmergent’s 2024 Home Mortgage Disclosure Act (HMDA) data, which reported around “6 million mortgage originations in the U.S. last year, valued at $1.82 trillion.”
Based on an average loan size of approximately “$340,000,” Ark Invest’s analysis suggests that “if just 5% of mortgage borrowers included crypto-based assets in their applications, …
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