Ark Invest CEO Cathie Wood is among the prominent voices calling for the price of leading cryptocurrency Bitcoin BTC/USD to trade higher in the coming years.
Wood recently announced a new projected price target for Bitcoin in 2030. Speaking at a recent conference, Wood said Bitcoin could hit a price of $3.8 million by the year 2030. The new estimate, which is ahead of her previous bullish price target of $1.48 million, comes based on institutional adoption.
Here's a look at how a small investment in Bitcoin today could increase over time based on her bullish take.
Following Wood Into Bitcoin: With Bitcoin hitting all-time highs in 2024, investors could be reluctant to invest in the assets as it soars.
Here's a look at how much a small investment today could be worth if Wood's price target comes true, based on a price of $70,600.24 for Bitcoin at the time of writing.
Bear Case, $257,500: $100 today would be worth $360.50
Base Case, $682,000: $100 today would be worth $954.80
Bull Case, $1.48 million: $100 today would be worth $2,072.00
New Bull Case, $3.8 million: $100 today would be worth $5,320.00
As you can see, a small investment would turn into a sizable return if Wood's base or bullish predictions come true. Even the bearish price target hitting would more than double the investment from today.
While there's no guarantee that any of the price targets will hit, the exercise shows how a small investment in cryptocurrency could add up over time.
Related Link: EXCLUSIVE: Why Does Cathie Wood Think Bitcoin Is Going To $1 Million — What Does She Know That We Don't?
What Happened: Bitcoin soared in price over the last year, hitting several new all-time highs in 2024.
Wood saw Bitcoin hitting new highs going forward and raised her bullish case to $3.8 million for the cryptocurrency in 2030.
Wood's Ark Fund was also one of several companies to have a Bitcoin ETF approved by the SEC with its Ark 21 Shares Bitcoin ETF ARKB. The Bitcoin ETFs have seen strong inflows and are breaking records for new ETFs.
"With this institutional green light that the SEC has provided, kicking and screaming though it did, the analysis we've done is that if institutional investors were to allocate a little more than 5% of their portfolios to bitcoin, as we think they will over time, that alone would add $2.3 million to the projection I just gave you," Wood said.
Adding $2.3 million to the $1.5 million leads to a new price target of $3.8 million for 2030 based on institutional investors allocating 5% of their portfolio to Bitcoin.
In its Big Ideas 2023, Ark Invest shared a base case price target of Bitcoin of $682,000, a bull case of $1.48 million and a bear case of $257,500.
The approval of the Bitcoin ETFs led to Wood saying in an interview that "the probability of the bull case has increased."
What Benzinga Readers Think: Benzinga polled its audience on X, formerly known as Twitter, asking "Cathie Wood says Bitcoin could skyrocket to $3.8M by 2030 thanks to ‘Institutional Green Light.' Do you Agree?"
The results were as follows:
Yes: 25.2%
No: 60.1%
Maybe: 14.7%
Along with believing in Bitcoin and having strong future price targets, Wood has put her money where her mouth is with the launch of the Bitcoin ETF and investing in companies exposed to the cryptocurrency sector.
The flagship Ark Innovation ETF ARKK counts cryptocurrency trading platform Coinbase Holdings COIN as its top holding, representing 10% of assets. The fund also has Block Inc SQ and Robinhood Markets HOOD as top 10 holdings, representing 6.9% and 4.4% of assets respectively. Both companies have exposure to cryptocurrency.
Photo: Cathie Wood, Courtesy Ark Invest; Bitcoin, via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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