Recently, Catherine Wood, Founder, CIO and CEO of ARK Investment Management, LLC (aka “ARK” or “ARK Invest”), spoke about institutional investing in Bitcoin.
In a November 17 virtual interview with Lauren R. Rublin, senior editor at Barron, Wood said large institutional investors were moving towards Bitcoin and highlighted the lack of correlation between crypto and other assets.
According to a report on this interview by The Daily Hodl, Wood said:
“We can see who is moving in and it looks like strong institutional holders are moving in. [to Bitcoin]. Why are they moving in? Because the correlation of returns between crypto, especially Bitcoin, and other assets – stocks, bonds, currencies, commodities – is very low.
“Studies tell us that while there is a low correlation of returns between assets, [buying] this asset with the low correlation, you will increase returns and reduce risk over time.“
She also reiterated her previous price prediction for Bitcoin:
“The reason we used the $ 500,000 mark for a Bitcoin price target is that if institutional investors go into Bitcoin and allocate 5% of their wallets to it, our estimate is that Bitcoin will increase by $ 500,000. We can say that this happens by looking at on-chain scans.“
In September, Wood told Yahoo! Finance in an interview that gold fans fail to understand that the value of Bitcoin beyond being a store of value asset:
“Many investors who have dedicated their careers to gold cannot understand the digital concept associated with gold… What we think [they’re] missing is more than just a store of value or digital gold. Bitcoin, in particular, is a new global monetary system. It is a rules-based monetary policy, which is completely decentralized and is therefore not subject to the whims of policymakers.“
And in February, during a maintenance on Bloomberg TV, Wood said she believed Bitcoin to be “the best hedge against inflation, far from better than gold.”
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptoassets carries a risk of financial loss.