Cathie Wood, CEO of Ark Invest, has always been bullish on Bitcoin. The CEO previously stated that she expected the digital asset’s price to 10X from 2021 prices. In the next five years, I expect it to be at least $500,000. Wood predicted this earlier in the year. And has now made this prediction two times in a row. Wood believes that the digital asset is still in a “capitulation phase,” making now an excellent time to purchase it.
The CEO’s faith in bitcoin is reflected in her investment choices. Cathie Wood’s investment firm, Ark Invest, owns Coinbase stock. The first cryptocurrency exchange in the United States to go public. Ark Invest was among the first to put money into the cryptocurrency exchange. Wood’s company also has a stake in Grayscale Bitcoin Trust, the world’s largest bitcoin trust. Currently owning over 7 million trust shares.
Bitcoin’s value could more than double.
Wood mentioned her firm’s research into institutional investment inflows into the asset while speaking at the SALT Conference in New York. The CEO stated that if institutional investors continue to diversify their portfolios at the current rate, bitcoin will grow tenfold from current price levels. Woods explained that the same analysis that led to this prediction for bitcoin could also apply to any other cryptocurrency on the market.
The prediction is consistent with Wood’s previous estimates of $500K in five years. This prediction has previously been labeled as optimistic. However, given Wood’s track record and success with risky investments, it’s easy to see how this would be right up her alley.
Bitcoin’s growth has shown tremendous promise in recent years. The asset, which is only a dozen years old, has grown by more than 400,000 percent since its inception. A tenfold increase in the next five years is not out of the question for an asset with such a track record.
Growing Trust in Ethereum
Wood explained that she would always invest in bitcoin as her first choice of cryptocurrency. Because of the digital asset’s widespread adoption. Recent events, such as El Salvador making it legal tender in the country, are cited. However, he admits that with the transition from proof of work to proof of stake, trust in Ethereum has grown dramatically.
“Ether, on the other hand, is seeing a surge in developer activity as a result of NFTs and DeFi. I’m fascinated by what’s going on in DeFi, which is lowering the cost of financial infrastructure in a way that I know the traditional financial industry does not recognize right now.”
Cathie Wood explained that, while bitcoin would continue to receive a larger share of investment, Ethereum would also receive a significant share. The CEO stated that the allocations would be 60% Bitcoin and 40% Ethereum.