dailyhodl.com
ARK Invest founder Cathie Wood thinks BlackRock’s entry into the crypto space could have huge implications for the price of Bitcoin (BTC).
Last week, US-based crypto giant Coinbase announced that it teamed up with BlackRock, the biggest asset manager in the world, to bring cryptocurrency trading to wealthy clients.
Wood explains in a new YouTube video that her firm did a study on institutions moving into crypto. The study asserted that institutions that wanted to access crypto but also wanted to minimize volatility would put 2.5% of their portfolios into crypto.
Wood notes that if you applied that 2.5% rule to BlackRock’s $40 trillion platform, that translates to more than $1 trillion worth of demand. That level of demand would “more than double” Bitcoin’s price, according to the ARK Invest executive.
Wood also notes another Bitcoin metric indicates BTC could actually surge even higher.
“The illiquid supply, according to our estimates, is about 14 million out of the roughly… 18-19 million Bitcoin outstanding… And by our calculations, only three million units are truly liquid. And so the demand – if we were to see a $1 trillion increase in demand – then it would probably drive the price up much higher than the doubling that I just mentioned.”
BTC is trading for $23,797 at time of writing. The top-ranked crypto asset by market cap is up nearly 3% in the past 24 hours.