Cathie Wood, maverick investor and head of Ark Invest, is not known for being shy. Her career has been marked by bold moves and bold statements.
Perhaps nowhere is that more true than in her full support of Bitcoin. (Cryptocurrency: BTC) And her predictions about the future. The cryptocurrency that started it all has been on a meteoric rise recently, soaring more than 40% in the past month and reaching six digits for the first time. That's incredible, but Wood believes there's still a lot of work to be done. In recent years, Wood has gone on record as saying that the price of Bitcoin could reach a whopping $3.8 million by 2030, or an increase of 3,890% from today's value. .
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Wood's main argument revolves around increasing buy-in from institutional investors. She believes the recent increase in professional asset managers adding Bitcoin to their holdings will accelerate and the resulting influx of capital will have a significant impact on its price.
The fact that not only the most advanced and risk-tolerant investors, but also large numbers of executives across Wall Street, consider Bitcoin a legitimate investment makes it arguably the most significant development since the inception of cryptocurrencies. There is one.
From the beginning, the industry has had an image problem. There are still problems, but things are changing. Many people still think this is too dangerous, but it's a far cry from the early days when most people thought it was either a fad or a complete scam. The tacit blessing of Wall Street firms can help change that perception.
Currently, 60% of professionally managed funds have at least 1% of their portfolio in digital assets, and most intend to increase their position in the future. It wasn't that long ago, just a few years ago, that professional managers were touching Bitcoin with a 10-foot pole.
The growing acceptance of Bitcoin as legitimate among Wall Street, even if cautious at the moment, could be game-changing in the long run.
The main factor that enabled this change was the introduction of Spot Bitcoin Exchange Traded Funds (ETFs) earlier this year. After the Securities and Exchange Commission (SEC) gave the green light, issuers like Ark began offering exposure to Bitcoin without requiring investors to hold the assets themselves. ETFs can be traded like any other security through traditional brokerages. It also provides increased liquidity to the market, which is important for institutional investors.
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