Ark Invest CEO and Chief Investment Officer Cathie Wood stated that both bitcoin and other cryptocurrencies could be part of 20% of institutional investors’ portfolios.
During an interview With the US chain CNBC, in the program « Closing Bell «, Wood indicated that, as bitcoin has greater acceptance, Institutional investors will choose to “put 60% of their reserves in stocks, 20% in bonds and 20% in bitcoin.”
According to Wood, the “historic drop” in bond yields seen in recent years “makes the idea of a 60% equity, 40% bond portfolio problematic.” For this reason, for the executive, “it should not surprise” a greater adoption of bitcoin by investors.
The also founder of Ark, argues that the precious cryptocurrency will behave like “the markets of fixed income, believe it or not. ”
Likewise, he said that bitcoin will achieve greater stability in its price with the passage of time. “We are seeing an institutional move that has diversified balances from cash to bitcoin,” he asserted.
What was commented by Wood, is related to the study of the investment bank JPMorgan, reviewed by CriptoNoticias, in which it is revealed that 11% of the institutions have already invested in bitcoin and other cryptocurrencies.
When asked about the comparison that some people usually make between bitcoin and gold, it ensures that, the price of bitcoin is more correlated with real estate prices today.
Ark Invest, true to bitcoin
Last January , CriptoNoticias reported on an analysis by Ark Invest, on emerging technologies, including Bitcoin. The study was carried out from the perspective of its market potential and long-term impact.
At that time, the firm announced that it would be enough to include 1% of bitcoin in the balance sheets of the companies that make up the S&P 500 index, so that the price of the first cryptocurrency increases by USD 40,000.
According to that calculation (made when bitcoin was worth USD 32,000), after a massive institutional investment such as the one indicated , bitcoin would reach about $ 72,000. This is 22% more than the current price of USD 56,000.
The institutional factor strengthens bitcoin
Recent news seems to confirm Ark’s prediction. For example, this week a major institutional investor such as New York Digital Group (NYDIG) announced the completion of a financing round that will allow them to help institutions invest in bitcoin.
The firm published a list of strategic partners that will invest in the provider of technological solutions and investments for bitcoin, among which is the financial multinational Morgan Stanley and Soros Fund Managament, along with Stone Ridge, Holdins Group, and MassMutual.
The objective of NYDIG is to work hand in hand with investors to offer solutions focused on bitcoin to sectors such as insurance, banking and renewable energies, as reported by this medium.