'What's The Reason Not To Diversify?' Cathie Wood Talks Bitcoin Hitting $400,000, Rise Of NFTs
Ark Investment Management Founder and CEO Cathie Wood joined Benzinga’s "Raz Report" for an exclusive interview Wednesday. Wood shared her thoughts on cryptocurrency and the rise in the valuation of Bitcoin.
Wood on Cryptocurrency: Wood listed Bitcoin as two of the points in the Ark Funds’ Big Ideas list for 2021 and on.
“We are very optimistic about Bitcoin in particular,” Wood said.
Public Companies Buying Bitcoin: Wood expects more institutional interest in buying Bitcoin. Wood highlighted several companies like Tesla Inc (NASDAQ:TSLA), Square Inc (NYSE:SQ) and MicroStrategy Inc (NASDAQ:MSTR) that have added Bitcoin to their balance sheets.
Wood also highlighted Mass Mutual, an insurance company. While the purchase may have been small, Wood mentioned this was likely a big hurdle for an insurance company and shows the conviction companies have for the cryptocurrency.
“What’s the reason not to diversify,” Wood asks of companies not adding Bitcoin (CRYPTO:BTC).
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How High Could Bitcoin Go: If all corporations put 1% to 10% of their cash balance into Bitcoin, the valuation of the cryptocurrency could rise significantly: “That would add $40,000 to $400,000 to the Bitcoin price,” Wood said.
NFT Growth: One of the hot stories in the cryptocurrency market has been the rise in sales and valuations of NFTs, or non-fungible tokens.
“We’re very excited,” Wood said on NFTs.
She highlighted async art, a platform that helps artists sell their work as NFTs.
“We’re going to try to do this ourselves,” Wood said on NFTs. Wood mentioned possibly partnering with async art.
Original artists are able to have their name on the artwork forever and can earn royalties on additional sales of the work and other people building on top of it: “That’s the wonderful thing about blockchain technology.”
BTC Price Action: Bitcoin is trading around $50,696 at the time of writing.
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