Ark Investment Management founder Cathie Wood has praised Tesla and Square’s decision to invest in Bitcoin on CNBC. Wood is also expecting that institutional interest in bitcoin will pick up in 2021. According to her, widespread corporate adoption of cryptocurrency will still take more time. Earlier last week, Tesla announced on investing $1.5 billion in bitcoin in January and is planning to accept the flagship cryptocurrency as a form of payment in the near future. While in October 2020, Square purchased $50 million worth of bitcoin, representing approximately 1% of the firm’s total assets.
Bitcoin Would be Valued at $200,000 Following More Corporate Investment
Wood during a CNBC interview that said it’s wise for Tesla and Square to diversify their cash, adding:
“They’re on the right side of change when it comes to innovation.”
Cathie Wood is also the manager of the popular ARK Innovation exchange-traded fund. Tesla is the top holder in Wood’s flagship fund, while Square is the third.
Wood also said she was surprised by the current pace of companies incorporating bitcoin in their books. She estimated that a single bitcoin could be valued at $200,000 or more if more corporations added the cryptocurrency to their balance sheets.
However, she also doubts that such balance-sheet moves by corporations will happen that fast. Bitcoin will need to further mature before there is broad-based inclusion. She said isn’t expecting to happen anytime soon, especially since bitcoin’s $900 billion market capitalization is still less than half of Amazon and Apple.
Bitcoin’s Price Trading Up 80% Year to Date
Wood’s flagship fund has returned about 160% over the past 12 months and grown its assets by more than 10-fold, to $22 billion. ARK Innovation is now the largest active ETF in the world.
Meanwhile, Bitcoin’s price was trading up 80% year to date, around a record above $52,000. While the Dow Jones Industrial Average (DJIA) was up 3.3% while the S&P 500 SPX was up by 4.6%. Meanwhile, Bitcoin is currently hovering around $51,000 after hitting a record high above $52,000 yesterday.