It’s been reported that institutional money is pouring into Bitcoin like there’s no tomorrow. Check out the latest reports below.
It’s been revealed that ARK Invest CEO Cathie Wood said that large institutional entities with strong hands are moving into Bitcoin (BTC) in a hurry.
During a new interview with Barron’s, Wood explained that institutions have their eye on Bitcoin and this is partially because of its lack of correlation with other assets.
“We can see who’s moving in and it looks like strong, institutional holders are moving in [to Bitcoin]. Why are they moving in? Because the correlation of returns among crypto, especially Bitcoin, and other assets – stocks, bonds, currencies, commodities – are very low.”
She continued and said:
“Studies tell us that if there’s a low correlation of returns among assets, [buying] that asset with the low correlation, you will be raising returns and lowering risk over time.”
It’s also important to note the fact that she is bullish on BTC, and she also said the trend of companies such as Elon Musk’s Tesla adding it to their balance sheet caught her by surprise.
“What we didn’t expect when we did our own study on Bitcoin, we didn’t expect institutions, mainly corporations, to begin diversifying their cash on the balance sheet into Bitcoin.”
BTC to hit $500k
Woods also continued and said that her previous Bitcoin price prediction of $500,000 is still up. She also said that an uptick in institutional investing could make it a reality.
“The reason we’ve used the $500,000 mark for a Bitcoin price target is that if institutional investors move into Bitcoin and allocate 5% of their portfolios to it, by our estimates Bitcoin will go up by $500,000. We can tell this is happening by looking at on-chain analytics.”
At the moment of writing this article, BTC is trading in the green and the king coin is priced at $59k. Stay tuned for more news.