American Investor Cathie says that bitcoin could skyrocket about 1,000% to $550,000 if institutional clients allocated 5% of their portfolio to the asset over time.
Ark Invest’s founder maintains that corporations’ push for uncorrelated assets to traditional investments like bonds and stocks puts the crypto asset class in the right spot.
Wood says that institutional investors were more skewed to the larger cryptos like Bitcoin and Ethereum. She adds that institutional investors currently don’t have enough exposure.
Research by Ark Invest found out that real estate was the only other asset correlated to digital assets.
Wood’s view contradicts the notion that cryptocurrencies are risky assets that replicate the moves in the stock market. The sentiment seemed to be underpinned by the recent crash in the industry on fears related to a new covid-19 variant.
Source: Market Insider