ARK Invests Cathie Wood Says Institutions Will Come for Bitcoin (BTC) Amid US Banking Crisis

ARK Invest CEO Cathie Wood says that the US banking troubles will prompt institutions to invest in Bitcoin (BTC) in order to diversify their portfolios.

In a new interview with Bloomberg, Wood says Bitcoins strong performance as US banks failed will encourage wider adoption of the crypto asset.

One of the things that happen in a crisis is liquidity dries up so that tends to hurt assets. And the fact that Bitcoin moved in a very different way from the equity markets, in particular, was quite instructive.

Wood says she remains confident in ARKs base case prediction for Bitcoins price, which is more than $680,000 by the year 2030.

You’ll find the building blocks of those [Bitcoin] price targets in our ARK Big Ideas 2023. And they are, for the base case, I would suggest quite conservative. We’ve dialed some of them down since last year. I know that corporate treasuries pulled away from Bitcoin because the regulators were pulling them away from Bitcoin on their balance sheets. So we’ve pulled back there. But we do believe that the behavior of the price through this crisis is going to attract more institutions, for example.

She predicts institutions will diversify their portfolios with Bitcoin the same way they did with other asset classes during previous decades.

“Weve done a report targeting institutional investors and the allocation that they should make if they care about this new asset class, diversifying their portfolios. I believe it’s somewhere between 2.5% and 6.5%. So not crazy. These are the sorts of allocations they would have made to emerging new categories of assets like real estate in the 70s, emerging markets and small cap in the 80s and 90s.

Wood recently predictedthat once the Federal Reserve pivots, a surging economy reminiscent of the Roaring Twenties is likely to follow with innovative technologies like blockchain coming out ahead.

Bitcoin is worth $27,272 at time of writing.

Don’t Miss a Beat Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines


Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

This article was originally reported on The Daily Hodl.