November 20, 2020 04:58 PM ET (BZ Newswire) -- Cryptocurrency
Ark Investment CEO Cathie Wood appeared at the virtual investing in tech seminar put on by Barron's where she discussed the rise of Bitcoin.
What Happened: Wood told viewers the 160% year-to-date increase for the price of Bitcoin could be just the beginning.
Wood said the decision by the Fed to keep interest rates low, Bitcoin being a digital alternative to gold and an insurance policy against inflation as reasons why Bitcoin has increased in price.
The increase in institutional investors getting involved in Bitcoin is where Wood sees the price increasing further.
Wood said it reminds her of the early days of institutions beginning to make small allocations to real estate and emerging markets. She said the allocations started at 0.5% and then rose to 5%.
If institutions allocated mid-single-digit amounts to Bitcoin, it would take the price to a range of $400,000 to $500,000.
There will only be a supply of 21 million Bitcoin, with 18.5 million currently in existence.
Related Link: 3 Small-Cap Bitcoin Stocks That Could Benefit From Square’s Purchase
Why It’s Important: The rise in the price of Bitcoin would make it the 16th most valuable company by market capitalization. Bitcoin passed Mastercard Incorporated (NYSE:MA) Friday with a market cap of $335 billion.
Bitcoin had already passed Bank of America Corporation (NYSE:BAC) and Paypal Holdings (NASDAQ:PYPL) on the list.
The rise in Bitcoin price and demand has also helped the Grayscale Bitcoin Trust (OTC:GBTC) rise 145% year-to-date.
Wood is the manager of four of the best performing ETFs in 2020 with the Ark ETFs.
Price Action: Bitcoin traded at $18,619.50 at time of publication Friday.
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