On December 9, Ark CEO Cathie Wood stated that crypto represents a small portion of institutional portfolios, and that “institutions are moving in” on Bitcoin and its brethren.
She claims that cryptocurrencies are a new asset class with a “very different correlation compared to other asset classes,” with only real estate coming close. She continued, saying:
“Institutional managers must consider emerging asset classes with low correlations.” That is the Holy Grail of asset allocation and the key to diversification.”
She went on to say that if institutions made the move into BTC by allocating around 5% of their portfolios to it over time, it could add $500,000 to the asset’s price.
Institutional Bitcoin bulls are still amassing.
MicroStrategy, a business intelligence, mobile software, and cloud services firm, has already increased its allocations.
On December 9, the company led by Michael Saylor paid $82.4 million in cash for an additional 1,434 BTC. MicroStrategy is at the top of the list of corporations that have invested in Bitcoin. It currently holds 122,477 BTC, which is worth approximately $5.9 billion at current prices.
According to BitcoinTreasuries, Tesla is in second place, with a Bitcoin stash of 43,200 coins worth around $2 billion. With 8,027 coins, Jack Dorsey’s Square, now known as Block, is the third-largest corporate holder of the asset.
Grayscale, the world’s largest crypto fund, currently manages $46.6 billion in assets, according to a December 10 update. The majority of this fund’s assets, approximately 68 percent, are held in its BTC trust.
El Salvador, meanwhile, has been buying the dip, with President Nayib Bukele loading another 150 BTC on December 4.
Markets may be correcting right now, but the narrative remains bullish, and Cathie Wood may be onto something if more institutional and corporate investors seek to hedge with cryptocurrency.