Cathie Wood, founder and CEO of ARK Invest, stated that Bitcoin (BTC) is likely to rise to a price of more than half a million US dollars. In an interview with CNBC, Woods stated that ARK Invest envisions a scenario in which institutional investors increase the current value of Bitcoin by $500,000.
Cathie Wood said:
“We think that if we chose Bitcoin, and that seems to be their first stop, the move from institutions to Bitcoin could add $500,000 to Bitcoin’s price.”
At the time of writing, Bitcoin is trading at $48,502. If Bitcoin follows Wood’s script, a price of $548,502 means that BTC will rise about 1,000% from its current level. According to the CEO of ARK Invest, this can happen if institutional investors allocate about 5% of their capital to BTC over time.
Wood added that institutional money managers invested in cryptocurrencies and initially bought the two largest crypto assets by market cap.
“I think institutions are coming in and right now they are starting with Bitcoin (BTC) en Ethereum (ETH).
Crypto of any kind is a de minimis (intangible) amount or percentage of institutional portfolios.”
The founder and CEO of ARK Invest also stated that institutional investors are turning to cryptocurrencies to achieve diversification.
“The rationale for the creation of institutions is to some extent because this is a new asset class and its relevance is very different from other asset classes…
Most closely related to other assets is real estate. Therefore, institutional money managers need to pay attention to new asset classes that are developing less relevant.
This is the key to diversification and the holy grail of asset allocation. “
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