Cathie Wood, Ark Invest CEO, says that many institutional investors have yet to enter the cryptocurrency space
She said that institutional investors continue to put large chunks of their investments into Bitcoin. The Bitcoin price will soar by $500,000 if big-money hedge funds and investors invest just 5% in the asset..

Cathie Wood, an American investor, whose popularity has skyrocketed in the last year because of her investment strategies has reiterated her Bitcoin price call.

It’s not the first time Wood is predicting how high the cryptocurrency could surge. Ark Invest CEO in September expressed a similar bullish opinion on Bitcoin. He said that Bitcoin’s price would rise to $550,000 in the next few decades.

In an interview with CNBC, she reiterated the call on Thursday. She indicated that she believes that the entry of large-scale capital into crypto will propel Bitcoin to $500k.

Wood stated that Bitcoin is a pioneer cryptocurrency and institutions need only to invest 5% in it to make the current price rise by $500,000

According to her, this allocation to major portfolios should not be made overnight. It should take time. Eventually, she sees BTC’s price reaching her earlier prediction of $550k, a scenario that calls for a tenfold increase in the cryptocurrency’s value.

The “holy grail” of asset allocation

Wood said that the crypto industry has been subject to large capital inflows by institutional investors and hedge funds. This is likely to be a boon for Bitcoin.

According to her, the crypto’s pull today is down to investor appetite for opportunities other than stocks, bonds, or other such traditional investment tools.

According to the investor crypto is currently a category of asset class that institutions are looking for. This “new asset class” she toldCNBC has Bitcoin and Ethereum listed as the top two most-invested assets.

Wood stated that diversifying portfolios is a key goal for investors looking to find new ways to diversify.

She pointed out that this is how investment managers achieve diversification, calling such a realization the “holy grail” of asset allocation.