Founder and CEO of ARK Investment Management, Cathie Wood believes Bitcoin’s value will reach at least $1.5 million by the time 2030 rolls around, growing by 15x from its current price.
In a recent interview on the YouTube channel The Diary of a CEO, Wood breaks down the main reasons why she believes BTC (BTC)’s value is bound to skyrocket to at least $1.5 million within the next few years.
The ARK Investment CEO mentioned several core pillars which make up the “building blocks” of BTC’s growth in the market. One of the major drivers is institutional investments from corporate holders such as Arkham, Strategy and Metaplanet.
“Bitcoin is more of an investment because it does appreciate overtime. Now you go through [it], it’s volatile. No question. And that’s the first thing people have to know about it. But it is becoming less volatile as more and more investors hold it,” she said in the interview.
According to Wood, a lot of institutional investors have just started to gravitating towards BTC. Therefore, she believes the crypto space will see a flurry of demand from institutional holders who see the appeal of Bitcoin as a new asset class that offers diversification for business portfolios.
Wood remarked that the world has not had a new asset class since the 1600s with the introduction of equities. Since then, the global market’s has been occupied by the same traditional assets including stocks, bonds, commodities and real estate. However now, there is a recent shift towards Bitcoin as a desirable asset.
“If this asset does not perform like other assets, in other words, it provides diversification for funds. And because it is behaving differently, institutions have to consider it,” said Wood.
Wood believes the institutional players currently rushing to adopt Bitcoin are late, considering there is only 1 million BTC left to be minted by miners, which represents only around $100 billion worth of untapped capital.
“So they’re [institutions] just now committing and there’s only $100 billion of new market cap that is going to be created. Whereas they have trillions of dollars under management,” said Wood.
“And so we think there will be a lot of incremental demand, and to satisfy a lot of that demand. Someone’s going to have to sell,” she continued.
Institutional appetite for Bitcoin
Wood’s statement indicates a wider trend among institutional investors which are just now discovering the advantages of holding Bitcoin. Back in May, Matrixport analysts found that unlike previous bull markets, the rally that raised BTC to a new all-time high of $111,814 was mostly driven by institutional demand, instead of the retail investors.
This means that more institutional investors such as major companies and financial management firms are crowding the market now more than ever before. In fact, at least 61 corporate treasuries currently hold a combined 3.2% of the total BTC supply according to Standard Chartered’s Bitcoin report.
Most recently, Japanese investment firm Metaplanet announced its plans to acquire 210,000 BTC by 2027, aiming to own 1% of the total supply of global BTC. Meanwhile, Michael Saylor’s Strategy remains the largest corporate holder of BTC, possessing 580,955 BTC as of June 9, holding around 2.7% of the total Bitcoin supply.
As previously reported by crypto.news, ARK Invest recently upped its Bitcoin price forecast in the firm’s April report to $2.4 million by 2030 if its on-chain financial services grow at a 60% annual rate.
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