Key Facts: Approval of bitcoin ETFs “moved up the timeline,” Wood says. The businesswoman highlights that large financial institutions could boost the price. Cathie Wood, the founder and CEO of asset management company ARK Invest, has raised her bullish expectations for bitcoin (BTC). According to what she said in a television interview, the price record that reached today above 72,000 dollars (USD) will be irrelevant for some time. The businesswoman maintained that the projection she published two years ago predicting that bitcoin would be worth USD 1 million by 2030 “has been advanced.” She now hopes that by then the price of the currency will be “well above that,” although she did not want to give a specific figure. The $1 million goal “was before the Securities and Exchange Commission (SEC) gave us the green light,” she explained. This refers to the approval two months ago of bitcoin exchange-traded funds (ETFs) in the United States. “I think that was an important milestone and it has moved up the schedule,” Ella Wood added. ARK Invest owns one of the ten bitcoin ETFs in the United States. Since their launch, these instruments have attracted great demand, which has allowed them buy more than 178,000 BTC. Consequently, this fact put upward pressure on the price of the currency. NeverthelessThis is just the beginning, according to Wood. The head of ARK Invest said he has “new expectations for institutional participation” that will boost the price of bitcoin. He highlighted that major financial institutions, such as Morgan Stanley, Merryl Lynch or Bank of America, have not yet entered the market. Therefore, he indicated that the bitcoin price rise has occurred before this potential institutional participation. This means that “we haven't even started,” he noted of the bullish momentum the coin's price could have.
Institutional investors should invest almost 20% in bitcoin, according to ARK Invest
Wood's comments come a month after ARK Invest published a report shared by BitcoinDynamic. This mentions that, if institutional investors allocated 1% of their portfolios to bitcoin, the price of the currency would rise to USD 120,000. Furthermore, in this report it is considered that an optimal portfolio allocation is 19.4% for institutional investors, which if done en masse would take the price of bitcoin to USD 2.3 million. In this sense, their actions are key to the price of the currency.