ARK Invest CEO and Bitcoin (BTC) supporter, Cathie Wood, recently predicted that major institutions will turn to the premier cryptocurrency amidst the ongoing banking crisis in the United States.
In a recent interview, Wood highlighted that current banking troubles nationwide would push institutions towards a more diverse portfolio, especially crypto investments. She has been buying up BTC throughout 2022's bear market to strengthen ARK Invest's BTC coffers.
Wood stated that the loss of liquidity due to banking troubles could hurt traditional assets and pointed out that BTC moving away from equity markets was "quite instructive."
ARK Big Ideas 2023 report had estimated that BTC would cross $680,000 by 2030 in its base case prediction for the premier crypto. Wood reiterated her faith in BTC’s ability to hit this mark within the estimated timeframe.
She claimed she remains confident in Bitcoin’s potential despite corporate treasuries pulling away due to regulators' pullback on their balance sheets. But as Bitcoin weathered this crisis well, it may attract more institutions going forward.
Wood equated Bitcoin with certain asset classes of previous decades like real estate assets in the '70s or small-cap stocks in the '90s. She believes institutional investors need to allocate between 2.5% -6.5% of their portfolios into cryptocurrencies like Bitcoin.
She predicts once Federal Reserve pivots towards crypto, there will be a resurgence of a thriving economy similar to "Roaring Twenties," partly helped by innovative technologies like blockchain and cryptocurrency.
Recently ARK Invest added $20 million Block shares and $30 million Coinbase shares into its funds despite suffering double blows as an activist short seller targeted Block Inc., and SEC issued Wells notice against Coinbase.
Disclaimer: This article is provided for informational purposes only; it is not legal or investment advice.