Cathie Wood, the CEO of Ark Investments just recently said that Bitcoin (BTC) will soon end up being an integral part of a “well balanced portfolio” in addition to stocks and bonds. Additionally, in a vibrant statement, Wood added that cryptocurrencies might support soon and eventually act like bonds.
Speaking at CNBC’s “Closing Bell” Wood included:
“We think as it ends up being a much better accepted new asset class … … We do think it will behave, actually, I would say more like the fixed earnings markets, think it or not”.
On Tuesday, March 9, Bitcoin (BTC) made a surge above $54,000 after remaining under pressure over the recently. At press time, BTC is trading at a price of $53,584 with a market cap of $1.0 trillion and is currently up 80% year-to-date.
Bitcoin (BTC) has actually been often touted as “digital gold” and a replacement to the yellow metal, however, its highly unstable nature has actually made financiers question its stability as a hedge property.
Wood: Bitcoin (BTC) Will Eat Into the Bond Market Share
In another fascinating contrast, Wood compared Bitcoin (BTC) to real-estate. Therefore, she goes on to include that Bitcoin (BTC) might be part of financiers’ well balanced portfolio wherein 60% is stocks and 40% as fixed earnings which is typically bonds.
Wood believes that Bitcoin will gradually consume into half of the fixed earnings market share aka bonds. She added:
“If you consider bonds from this level, this concept of a 60-40 balanced portfolio is a bit problematic. We‘ve been through a 40-year bull market in bonds. We would not be amazed to see this brand-new asset class end up being a part of those portions. Perhaps 60 equity, 20, 20 “. Wood’s Ark Investment has significant direct exposure to car giant Tesla(NASDAQ: TSLA)
which announced its$1.5 billion direct exposure to Bitcoin last month in February 2021. In another fascinating development, JPMorgan has actually filed with the SEC for a’Cryptocurrency Exposure Basket’liked to the stocks of public listed business having exposure in Bitcoin and other cryptocurrencies. The basket has exposure to 11 business in total with names like MicroStrategy, Square, Riot Blockchain, and chipmaker NVIDIA. The post Ark Investment CEO Says Bitcoin(BTC )Will Resemble Bonds As Part of Balanced Portfolio appeared first on Coingape.