Cathie Wood Predicts Institutional Crypto Adoption

Cathie Wood Predicts Institutional Crypto Adoption

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ARK Invest CEO and BTC supporter Cathie Wood believes that major institutions will turn to Bitcoin amidst the U.S. banking crisis. 

Banking Troubles Can Help BTC

In an interview, ARK Invest CEO Cathie Wood believes that the current banking troubles nationwide will push institutions toward a more diverse portfolio, especially crypto investments. Wood has long since been a champion of BTC and has been buying up the dip throughout the 2022 bear market to strengthen the BTC coffers of her company, ARK Invest. 

In the interview, she stated that the banking crisis could lead to a loss of liquidity, which would hurt traditional assets. Furthermore, she pointed out that BTC moving away from the equity markets was “quite instructive.” 

Wood Talks BTC Future

The company’s ARK Big Ideas 2023 report had estimated a base case prediction for the premier crypto, claiming it would cross the $680,000 mark by 2030. Wood reiterated her faith in the premier crypto, claiming she remains confident in BTC’s ability to hit the mark in the estimated time frame. She even stated that these predictions are quite conservative and have been dialed down since last year. 

She said,

“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.”

The Next “Roaring Twenties”

She equated Bitcoin with certain asset classes of previous decades that were key in helping certain institutions diversify their portfolios, giving examples of real estate assets in the 70s, emerging markets in the 80s, and small-cap stocks in the 90s. Wood believes that institutional investors need to allocate between 2.5% to 6.5% of their portfolios to Bitcoin and crypto. She predicts that once the Federal Reserve pivots toward crypto, there will be a resurgence of a thriving economy similar to the “Roaring Twenties,” helped partly by innovative technologies like blockchain and cryptocurrency. 

ARK Invest has recently added $20 million in Block shares and $30 million in Coinbase shares to its funds. Unfortunately, ARK suffered a double blow as an activist short seller targeted Block Inc, and SEC issued a Wells notice to Coinbase. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. 

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