CEO of ARK Invest Katie Woodrapid acquisition of large corporate assets with strong investments. bitcointo (BTC) stated that it passed.
barron’s In a recent interview with Wood, Wood claimed that institutions are eyeing Bitcoin in part due to its lack of correlation with other assets.
“We can see who is carrying[their assets]and strong, institutional investors seem to be shifting to Bitcoin. Why are they moving? Because the return correlation between crypto, especially Bitcoin (BTC) and other assets (stocks, bonds, currencies, commodities, etc.) is very low.
Research tells us that if there is a low correlation of returns between assets, by buying that asset with a low correlation, you will increase returns and reduce risk over time.”
According to Wood, although BTC is on the rise, he was surprised by the tendency of companies like Elon Musk’s Tesla to add it to their balance sheets.
“Since we are doing our own work on Bitcoin, what we did not expect was that institutions, especially companies, started converting cash on their balance sheets to Bitcoin.”
Wood said that an increase in institutional investment could make this a reality, noting that his previous Bitcoin price prediction would hold. Wood had previously claimed that BTC could reach $500,000.
“The reason we used the “$500,000” mark for the Bitcoin price target was that if institutional investors were to switch to Bitcoin and dedicate 5% of their portfolio to it, our predictions would go as high as $500,000. It is possible to tell by looking at the on-chain data that this is happening.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.