Cathie Wood, CEO of Ark Invest, predicts that the price of bitcoin could multiply tenfold over the next five years, and the growth of decentralized finance (DeFi), non-fungible tokens (NFT), and Ethereum 2.0 has boosted Ark’s confidence in the future of ether (ETH).
The manager advocates a crypto allocation distributed between 60% bitcoin and 40% ether. The comments were made during the SALT Conference, major finance, technology, and public policy forum held in New York City.
Her thesis is based on the increase in the number of companies with bitcoin on their balance sheets and institutional investors allocating around 5% of their bitcoin portfolios in other cryptocurrencies.
Wood mentioned the adoption of bitcoin in El Salvador and possibly other Central American countries as another reason for growth prospects.
What does Ark Invest do?
Ark Invest is an exchange-traded fund manager with a focus on disruptive innovation. It has significant investments in Coinbase and shares in Grayscale Bitcoin Trust. The executive has often spoken about her enthusiasm for bitcoin.
Cathie Wood also mentioned the threats by the SEC, the U.S. Securities and Exchange Commission, to sue Coinbase over the launch of a stablecoin-based income product. She points out that the crypto ecosystem is developing faster than regulators have been able to keep up with.
Ray Dalio claims to have exposure to bitcoin
During the conference, Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, admitted that he has “a certain amount” of bitcoin. “I believe that all alternatives to cash and financial asset types are worth considering. Bitcoin is one possibility. I have a certain amount in Bitcoin”, he said.
Dalio also warned about the performance of regulators, saying that these agents can kill digital currency over time. “I believe they will kill it because they have ways to do it”, he told the site during the event.
Some regulatory agents have been taking action against the cryptoasset market. Last Tuesday, SEC Chairman Gary Gensler again talked about creating a robust regulatory environment for cryptocurrencies, mainly targeting digital assets that would fall under the securities category.