Katie Wood of ARK Invest Confirms Growing Interest of Large Investors in Bitcoin
The head of ARK Invest investment fund Katie Wood says that institutional investors are rushing to invest in bitcoin (BTC), since it does not have a correlation of returns with other assets - currencies, stocks, commodities, bonds. She admitted this to journalists of the American media Barron’s.
According to Wood, research convincingly shows that against the background of low correlation of returns among different groups of assets, acquiring the least similar to others can increase returns and reduce investment risks. And since there are no analogues of bitcoin in the traditional financial sphere, this has attracted the interest of many large institutional investors.
Despite the optimistic outlook, Wood admitted that the purchase of BTC by electric car maker Tesla took her by surprise. This happened much earlier than expected. Conducting their own research on bitcoin at ARK Invest, the fund's management expected that corporations would not start diversifying their assets on the balance sheet into bitcoins so soon.
Considering how quickly this trend manifested itself, Katie Wood reiterated her forecast for the rise in the price of bitcoins. She believes that the value of BTC will eventually reach $ 500 thousand. This figure is quite real. Its growth in the market will be provided by an increase in the presence of institutional investors.
According to the analysts of the ARK Invest fund, if Bitcoin in the coming years gains widespread acceptance among the holders of large portfolios, and they allocate 5% of funds for the purchase of BTC, the cryptocurrency will easily cross the half-million threshold of value.
“Looking at the analytics on the web, you can tell that this is already happening,” - said Wood.