The Ark Invest founder thinks the Bitcoin price could skyrocket to $500,000 if institutions pour in.
Speaking to CNBC on Dec. 9, Ark CEO Cathie Wood said that crypto has historically been just a small part of institutional portfolios and that institutions are now turning their attention to Bitcoin.
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She asserts that cryptocurrency is a new asset class “very different correlation compared to other asset classes”:
“Regulators have to look at emerging new asset classes with low correlation. It is the key to diversification and the Holy Grail in terms of asset allocation. ”
She then said that if institutions move into BTC investing by allocating about 5% of their portfolios, BTC could rise to $500,000.
Institutional investment increases, BTC price is still accumulating
Some large investors like the company MicroStrategy are increasing their allocation to cryptocurrencies.
On December 9, the company led by Michael Saylor purchased another 1,434 BTC or about $82.4 million.
MicroStrategy tops the ranking of corporations that have invested in Bitcoin. The company currently owns 122,477 BTC worth an estimated $5.9 billion at current prices.
Tesla comes in at second place according to BitcoinTreasaries, with 43,200 Bitcoins worth around $2 billion. Jack Dorsey’s Square, now known as Block, is the third largest asset holder with 8,027 BTC.
Grayscale — the world’s largest crypto fund — currently has $46.6 billion in assets under management, according to a Dec. 10 update. The bulk of this fund, around 68%, is in BTC.
El Salvador is also buying as prices drop, with President Nayib Bukele buying another 150 BTC on Dec.
The market may be correcting at the moment, but major institutions remain upbeat.
Bitcoin price has dropped again today, dropping another 1.6% to around $48,327.84 at press time, according to CoinGecko.
Last week, BTC was at $58,000 before dropping $16,000 in a few hours. After bouncing up from $42,000, bitcoin still failed to recover above the coveted $50,000 mark.
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