ARK Invest founder and CEO Cathie Wood is saying that Bitcoin (BTC) has the potential to erupt en route to a price tag of over half a billion dollars.
Woods says in a CNBC interview that ARK Invest foresees a scenario where institutional investors increase Bitcoin’s current value by $500,000.
[adinserter block="1"]“We think the move by institutions into Bitcoin if we were to choose Bitcoin, and that seems to be their first stop, could add $500,000 to Bitcoin’s price.”
Bitcoin is trading at $48,502 at time of writing. Should Bitcoin follow Wood’s script, a price tag of $548,502 means that BTC would rise by roughly 1,000% from current levels. According to the ARK Invest CEO, the scenario could play out if institutional investors allocated around 5% of their capital to BTC over time.
Wood adds that institutional money managers are investing in cryptocurrency and are initially buying the two biggest crypto assets by market cap.
“I think institutions are moving in and right now crypto of any sort, they are starting with Bitcoin and [Ethereum].
Crypto of any sort is a de minimis (immaterial) amount or percentage of institutional portfolios.”
The ARK Invest founder and CEO also says institutional investors are turning to crypto for diversification purposes.
“The reason institutions are moving in is to some extent this is a new asset class with correlations very different compared to other asset classes…
The closest correlation to other assets is real estate. And so institutional money managers have to look at new asset classes that are evolving, that have low correlations.
That’s the key to diversification and it’s the holy grail in terms of asset allocation.”
Follow us on X, Facebook and Telegram"We think that the move by institutions into #bitcoin … could add $500,000 to bitcoin's price if they moved into the tune of roughly 5% over time," says @ARKInvest's @CathieDWood #crypto pic.twitter.com/lX5yQGSK3b
— Squawk Box (@SquawkCNBC) December 9, 2021
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