Cathie Wood’s ARK Investment Management has put forth a remarkable estimation in their latest annual research report regarding the potential surge of bitcoin prices. According to their findings, an “optimal allocation” to the cryptocurrency from the vast global investable asset base could lead to bitcoin hitting a staggering $2.3 million.
ARK has based this forecast on their assessment of the global investable asset base, which stands at an impressive $250 trillion. Their chart in the report illustrates that a 19.4% allocation to bitcoin would correspond to prices reaching that incredible figure.
It’s worth mentioning that ARK, led by the reputable chief investment officer Wood, is one of the firms that recently introduced spot bitcoin ETFs, successfully gaining approval from the U.S. Securities and Exchange Commission in January.
At present, the ARK 21Shares Bitcoin ETF, which manages assets totaling $665 million, experienced a 0.8% increase in its shares on Friday morning, according to FactSet data.
While it is undeniable that bitcoin prices can be highly volatile, causing concerns about potential risks to investors’ portfolios in case of price crashes, it is crucial to note that as of Friday morning, bitcoin was trading at approximately $43,177 according to FactSet data.