Cathie Wood Thinks Bitcoin And Other Cryptocurrencies Could Soon Become Part Of Typical Investor Portfolios

Cathie Wood Thinks Bitcoin And Other Cryptocurrencies Could Soon Become Part Of Typical Investor Portfolios

Ark Invest’s Cathie Wood believes that cryptocurrencies could soon become a part of recommended portfolios for everyday investors.

What Happened: In her most recent interview with CNBC, Wood even went on to say that the currently volatile cryptocurrencies could soon stabilize and behave as bonds do.

“We think as it becomes a better accepted new asset class ... We do think it will behave, actually, I would say more like the fixed income markets, believe it or not,” Wood said on CNBC’s Closing Bell.

The Ark CEO notes that a typical investor portfolio consists of a 60% allocation to stocks and a 40% allocation to bonds.

“This idea of a 60-40 balanced portfolio is a bit problematic”, she notes, explaining that bond prices are especially high relative to history.

See also: How to Buy Bitcoin (BTC)

“We’ve been through a 40-year bull market in bonds. We would not be surprised to see this new asset class become a part of those percentages. Maybe 60% in equity, 20% in bonds, and 20 –– in crypto,” Wood said.

Why It Matters: Retail investors have often been skeptical about allocating a percentage of their portfolio towards cryptocurrencies due to their perceived risk.

However, more recently, some large retail investors have begun making somewhat sizeable allocations towards cryptocurrencies – one of them being billionaire investor Kevin O’Leary who recently disclosed a 3% portfolio allocation towards cryptocurrency.

Analysts from JPMorgan Chase & Co. JPM also recently recommended a 1% portfolio allocation towards cryptocurrencies to its clients.

Wood’s recommended 20% crypto allocation, however, far exceeds what typical fund managers and investment banks have previously suggested.

Image: Cytonn Photography via Pexels

Posted In: ARK InvestBitcoinCathie WoodCNBCcryptocurrenciesCryptocurrencyFintechNewsMarketsMediaTrading Ideas

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