Cathie Wood says 5% of institutional funding can increase the price of Bitcoin by $500,000

The founder of Ark Invest believes that if the institution increases its allocation, the price of Bitcoin may soar by another $500,000.

On December 9, Ark CEO Cathie Wood stated in an interview with CNBC that encryption is a small part of institutional investment portfolios and that “institutions are turning to” Bitcoin and its similar products.

She asserted that cryptocurrency is a new asset class, "very different from other asset classes," and only real estate is close. She added:

"Organization managers must focus on new asset classes that are developing and less relevant. In terms of asset allocation, this is the key to diversification and the Holy Grail."

She then said that if the institution switched to BTC by allocating approximately 5% of its investment portfolio over time, the asset price could increase by $500,000.

Institutional BTC bulls are still accumulating

Some large investors, such as business intelligence, mobile software, and cloud services company MicroStrategy, are already increasing their configurations.

On December 9, the company led by Michael Saylor purchased an additional 1,434 BTC with approximately US$82.4 million in cash. MicroStrategy ranks among the best companies that invest in Bitcoin. It currently holds 122,477 BTC, which is worth approximately US$5.9 billion at current prices.

According to data from BitcoinTreasuries, Tesla ranks second, with 4,700 Bitcoins in Bitcoin, worth about 2 billion U.S. dollars. Jack Dorsey’s Square, now called Block, is the third-largest corporate holder of the asset, with 8,027 coins.

According to its December 10 update, Grayscale, the world's largest crypto fund, currently manages $46.6 billion in assets. The largest share of the fund is about 68% and belongs to its BTC trust.

El Salvador has also been buying on dips. On December 4, President Nayib Bukele (Nayib Bukele) loaded another 150 BTC.

The market may be correcting at the moment, but the narrative is still bullish. If more institutional and corporate investors begin to seek cryptocurrency hedging, Casey Wood may make a difference.

Bitcoin price outlook

According to CoinGecko, Bitcoin prices fell again today, falling a further 4% to around $47,800 at the time of writing.

Less than a week ago, the price of the asset was $58,000, and then fell by $16,000 within a few hours. After rebounding from a two-month low of $42,000, Bitcoin was still unable to cover most of its losses because it failed to break the coveted $50,000 mark.