Leading cryptocurrency Bitcoin BTC/USD has rallied in 2023, up over 80% year-to-date. There could be more upside for Bitcoin in the coming months with several Bitcoin ETFs filed for approval, including one from Cathie Wood’s Ark Funds.
What Happened: Ark Invest CEO Cathie Wood is among the financial experts who see more upside coming for Bitcoin. Over the years, Wood has been a strong believer in Bitcoin and has supported progressively higher price targets. Her price targets of $400,000 and $500,000 by 2030 were eventually raised to $1 million, a number she’s backed multiple times.
Wood has said the price of Bitcoin could rise if corporations put 1% to 10% of their cash balance into Bitcoin, a comment that came after Tesla, Square and other companies added the leading cryptocurrency to their balance sheets.
“We are very optimistic about Bitcoin in particular,” Wood told Benzinga in a previous interview.
Bitcoin hit an all-time high of $68,789.63 in November 2021 and saw a decline in its price in 2022 after the bankruptcy and collapse of several major cryptocurrency companies.
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Despite setbacks in the crypto sector, Wood has remained positive on the future of digital assets in recent interviews.
“Hyperinflation all over the world as their currencies have fallen apart, those populations need a fallback – an insurance policy like Bitcoin,” Wood told Yahoo Finance in a February 2023 interview.
In its 2023 Big Ideas report, Ark Invest laid out several price targets for Bitcoin. The research report put together by Ark Invest sees Bitcoin hitting price targets in 2030 of $258,500 in the bearish forecast, $682,000 in an average market and $1.48 million in a bullish market.
Wood and Ark Funds remain bullish on Bitcoin and have increased their holdings in many of their ETFs to coincide with this thesis.
Cryptocurrency trading platform Coinbase Global COIN is among the top ten holdings in the Ark Innovation ETF ARKK, Ark Next Generation Internet ETF ARKW and Ark Fintech Innovation ETF ARKF. Here’s a look at the three ETF’s COIN holdings:
- ARKK: 2nd largest, $620.5 million, 8.0% of assets
- ARKW: Top holding, $134.3 million, 9.6% of assets
- ARKF: Top holding, $107.5 million, 11.7% of assets
The Grayscale Bitcoin Trust GBTC is also the second largest holding in the Ark Next Generation Internet ETF representing $108.6 million and 7.3% of assets.
Related Link: How To Buy Bitcoin
Investing $100 in Bitcoin: Here’s a look at how much an investment in Bitcoin today would be worth under various price targets from Wood and Ark Invest.
A $100 investment today could buy 0.003312 BTC based on a price of $30,195.99 for Bitcoin at the time of writing.
If Bitcoin hits $1 million as predicted by Wood several times, the $100 investment would be worth $3,312.
Here’s a look at the returns under the price targets from the Big Ideas report.
- Bear case, $258,500: $100 today would be worth $856.15.
- Base case, $682,000: $100 today would be worth $2,258.78.
- Bull case, $1.48 million: $100 today would be worth $4,901.76.
Read Next: Ark's Cathiie Wood Says Bitcoin Is Going To $1M, Jim Cramer Says 'Yeah And I Walked On Water'
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