Ark Investment CEO Cathie Wood appeared at Barron’s Virtual Technology Investing Seminar, where she discussed the rise of Bitcoin.
What happened: Wood told viewers that the 160% year-to-date increase in Bitcoin’s price could only be the beginning.
Wood said the Fed’s decision to keep interest rates low as Bitcoin is a digital alternative to gold and an insurance policy against inflation, which is why the price of Bitcoin has risen.
The increase in the number of institutional investors involved in Bitcoin is where Wood sees the price rise further.
Wood said it reminded him of the early days of institutions that began to make small allocations to real estate and emerging markets. She said allowances started at 0.5% and then increased to 5%.
If institutions allocated mid-digit amounts to Bitcoin, the price would be between $ 400,000 and $ 500,000.
There will only be a supply of 21 million Bitcoin, of which 18.5 million currently exist.
Related Link: 3 Small Cap Bitcoin Stocks That Could Benefit From Buying Square
Why this is important: The rise in the price of Bitcoin would make it the 16th most valuable company in terms of market capitalization. Bitcoin spent Mastercard Incorporated (NYSE: MA) Friday with a market cap of $ 335 billion.
Bitcoin had already passed Bank of America Corporation (NYSE: BAC) and Paypal funds (NASDAQ: PYPL) on the list.
The rise in the price and demand for Bitcoin has also helped the Bitcoin Trust in Grayscale (OTC: GBTC) up 145% year-to-date.
Wood is the manager of four of the best performing ETFs in 2020 with Ark ETFs.
Price action: Bitcoin was trading at $ 18,619.50 at the time of publication on Friday.
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