Speaking to CNBC on December 9, Ark CEO Cathie Wood said cryptocurrencies are a small amount of institutional wallets and that "institutions are moving" on Bitcoin and its siblings.
He said cryptocurrencies are a new asset class with a "very different correlation to other asset classes" and only real estate comes close. She added:
“Institutional managers need to look to evolving new asset classes that have low correlations. This is the key to diversification and the holy grail in terms of asset allocation ”.
He then said that if institutions switched to BTC by allocating around 5% to their portfolios over time, they could add $ 500.000 to the asset's price.
Institutional BTC bulls continue to pile up
Some large investors such as business intelligence, mobile software, and cloud services company MicroStrategy are already increasing their allocations.
On December 9, the company headed by Michael Saylor bought an additional 1.434 BTC for approximately $ 82,4 million in cash. MicroStrategy tops the chart for companies that have invested in Bitcoin. It currently owns 122.477 BTC with an estimated value of $ 5,9 billion at the quotation current.
Tesla ranks second according to BitcoinTreasuries, with a Bitcoin stash of 43.200 coins worth around $ 2 billion. Jack Dorsey's Square, now called the Block, is the third largest corporate holder of the asset with 8.027 coins.
Grayscale, the largest crypto fund in the world, currently has $ 46,6 billion in assets under management, according to the December 10 update. The lion's share of this fund, around 68%, is in its BTC confidence.
El Salvador also bought on the downside, with President Nayib Bukele making his other 150 BTC on December 4.
Markets may be correct at the moment, but the narrative is still bullish and Cathie Wood may be aware of something if more institutional and corporate investors start looking to hedge against cryptocurrencies.
Bitcoin price outlook
According to CoinGecko, bitcoin prices fell again today, dropping a further 4% to around $ 47.800 at the time of writing.
The asset was located at $ 58.000 less than a week ago before plummeting $ 16.000 in hours. After bouncing from the two-month low to $ 42.000, bitcoin is still unable to recover most of its losses as it fails to cross the coveted $ 50.000 milestone.
Will it succeed by the end of the year or will we have to wait until 2022 to see the main digital asset return to the levels of a few days ago? To you the comments in the section below.
