Ark Invest CEO Cathie Wood believes bitcoin’s price rally through the bank crisis will bring more institutional investors into the space.
“The fact that bitcoin moved in a very different way from the equity markets, in particular, was quite instructive,” Wood told Bloomberg on Tuesday. Corporate treasuries had previously been pulling away from having bitcoin in their balance sheets because regulators themselves were pushing them to divest, she said.
Wood believes investors should diversify their portfolios further into digital assets. In a report targeting institutional investors, Ark recommended they should allocate between 2.5% to 6.5% of their portfolios to crypto “if they care about this new asset class diversifying their portfolios.” This allocation would be similar to the size institutional investors historically have allocated to emerging asset classes, Wood said.
Bitcoin is up about 40% compared to 10 days ago, trading at around $28,200.
Ark Invest wrote in a note this week that Bitcoin and other cryptocurrencies were behaving like “safe havens.”
The company has recently furthered its investment into crypto or crypto-related companies, such as Coinbase, Robinhood and Block. It also raised more than $16 million for a new crypto fund.
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Source: https://www.theblock.co/post/221728/cathie-wood-bitcoin-price-rally-through-bank-crisis-will-attract-more-institutions?utm_source=rss&utm_medium=rss