Recently, Catherine Wood, Founder, CIO, and CEO at ARK Investment Management, LLC (aka “ARK” or “ARK Invest”), talked about institutional investment in Bitcoin.

During a virtual interview on November 17 with Barron’s Senior Managing Editor Lauren R. Rublin, Wood said that large institutional investors are making a move into Bitcoin and pointed out the lack of correlation between crypto and other assets. 

According to a report about this interview by The Daily Hodl, Wood said:

“We can see who’s moving in and it looks like strong, institutional holders are moving in [to Bitcoin]. Why are they moving in? Because the correlation of returns among crypto, especially Bitcoin, and other assets – stocks, bonds, currencies, commodities – are very low.

“Studies tell us that if there’s a low correlation of returns among assets, [buying] that asset with the low correlation, you will be raising returns and lowering risk over time.“

She also reiterated his previous price prediction for Bitcoin:

“The reason we’ve used the $500,000 mark for a Bitcoin price target is that if institutional investors move into Bitcoin and allocate 5% of their portfolios to it, by our estimates Bitcoin will go up by $500,000. We can tell this is happening by looking at on-chain analytics.“

Back in September, Wood told Yahoo! Finance in an interview that fans of gold fail to understand that Bitcoin’s value beyond being a store-of-value asset:

“Many investors who have spent their careers focused on gold cannot understand the digital concept associated with gold… What we think [they’re] missing is it’s much more than just a store of value or digital gold. Bitcoin, in particular, is a new global monetary system. It’s a rules-based monetary policy, which is completely decentralized and therefore is not subject to the whims of policymakers.“

And in February, during an interview on Bloomberg TV, Wood said that she thinks Bitcoin is “the best hedge against inflation out there far none and better than gold.”

Disclaimer

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.