dailyhodl.com
ARK Invest founder Cathie Wood says that Bitcoin (BTC) could reach $500,000 if institutional investors embrace the benchmark cryptocurrency.
Bitcoin is currently trading at $57,327, but according to Financial Review, Wood says that price could surge by nearly 10 times if institutions allocate just 5% of their investment funds to BTC.
Wood tells the CFA Societies of Australasia conference,
“I have seen two periods in my investment life where what seemed like new asset classes were moving into institutional portfolios. Real estate in the 70s and 80s, and emerging markets.
If institutions around the world were to allocate five percent of their portfolios to Bitcoin, that allocation alone, and this is just one of many use cases out there, would add roughly $500,000 to Bitcoin’s price.”
Wood says that the estimate did not factor in large firms already bullish on crypto, such as Square, MicroStrategy and Tesla, adding even more Bitcoin to their balance sheets.
Wood’s comments follow ARK’s recent SEC filing seeking approval for a Bitcoin futures exchange-traded fund (ETF). The application says that the fund will invest in exchange-traded Bitcoin futures contracts that are cash-settled in US dollars on the Chicago Mercantile Exchange (CME).