ARK Invest founder and CEO Cathie Wood is saying that Bitcoin (BTC) has the potential to erupt en route to a price tag of over half a billion dollars.

Woods says in a CNBC interview that ARK Invest foresees a scenario where institutional investors increase Bitcoin’s current value by $500,000.

“We think the move by institutions into Bitcoin if we were to choose Bitcoin, and that seems to be their first stop, could add $500,000 to Bitcoin’s price.”

Bitcoin is trading at $48,502 at time of writing. Should Bitcoin follow Wood’s script, a price tag of $548,502 means that BTC would rise by roughly 1,000% from current levels. According to the ARK Invest CEO, the scenario could play out if institutional investors allocated around 5% of their capital to BTC over time.

Wood adds that institutional money managers are investing in cryptocurrency and are initially buying the two biggest crypto assets by market cap.

“I think institutions are moving in and right now crypto of any sort, they are starting with Bitcoin and [Ethereum].

Crypto of any sort is a de minimis (immaterial) amount or percentage of institutional portfolios.”

The ARK Invest founder and CEO also says institutional investors are turning to crypto for diversification purposes.

“The reason institutions are moving in is to some extent this is a new asset class with correlations very different compared to other asset classes…

The closest correlation to other assets is real estate. And so institutional money managers have to look at new asset classes that are evolving, that have low correlations.

That’s the key to diversification and it’s the holy grail in terms of asset allocation.”

Check Price Action

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

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp
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.

Featured Image: Shutterstock/Croisy

The post Bitcoin Could Explode by 1,000% From Here, According to ARK Invest’s Cathie Wood – Here’s How appeared first on The Daily Hodl.