Zinger Key Points
- Cathie Wood has been bullish on Bitcoin for years and calls for the leading cryptocurrency to top $1 million.
- Wood recently reiterated her price targets for Bitcoin by the year 2030.
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Ark Invest CEO Cathie Wood has been a vocal bull for the cryptocurrency sector for years, specifically for leading cryptocurrency Bitcoin BTC/USD, which she recently said could be helped by the incoming White House administration.
Wood has shared price targets for Bitcoin over the years, including a high of $3.8 million for BTC by the year 2030. Here's a look at how much a small investment in Bitcoin today could increase over time if Wood's various price targets are reached in the future.
Following Wood Into Bitcoin: With Bitcoin hitting all-time highs after the 2024 presidential election, big questions remain about how high the leading cryptocurrency can go and how long it will take to reach various milestones like $100,000.
Earlier this year, Wood laid out her price targets for Bitcoin based on a bear case, base case and bull case for the year 2030. Wood also added a new bull case that includes the potential highest price Bitcoin could reach by 2030 if companies allocated 5% to Bitcoin.
With Bitcoin trading at $89,384.76 at the time of writing, an investor could buy 0.00112 BTC today with $100. Here is a look at how much that $100 would be worth in the future under Wood's various price targets.
- Bear Case, $258,500: $100 today would be worth $289.52, up 189.5%
- Base Case, $682,000: $100 today would be worth $763.84, up 663.8%
- Bull Case, $1,480,000: $100 today would be worth $1,657.60, up 1,557.6%
- Bullish Case, $3,800,000: $100 today would be worth $4,256.00, up 4,156.0%
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.
What's Next: Wood recently reiterated her price targets in a CNBC interview while highlighting how Ark Invest was early to investing in Bitcoin.
"We were the first public asset manager to gain exposure to Bitcoin in 2015 at $250," Wood said.
Wood said that even with Bitcoin trading around $90,000, the company believes there is a long way to go.
The fund manager said that getting regulatory relief with a new administration is one of the most important things for Bitcoin. Wood also sees Bitcoin being viewed as a new asset class, leading to more institutions and asset allocators wanting to invest in the top cryptocurrency.
Wood’s Ark Invest was also one of several companies to have a Bitcoin ETF approved by the SEC with its Ark 21 Shares Bitcoin ETF ARKB.
Wood's most recent $3.8 million price target might be one of the biggest from a fund manager and among the most bullish bets on cryptocurrency. The target came from the approval and early success of Bitcoin ETFs earlier this year.
“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.
The approval of the Bitcoin ETFs led Wood to say in an interview that “the probability of the bull case has increased.”
Wood and Ark Invest aren't just betting on the success of Bitcoin with its cryptocurrency holdings and the ETF, the company is also investing in crypto-related companies.
The flagship Ark Innovation ETF ARKK has Coinbase Holdings COIN as its third-largest holding, accounting for 9.5% of its assets. Robinhood Markets HOOD is the fund's sixth-largest holding, accounting for 5.0% of its assets.
Bitcoin hit an all-time high of $93,434.36 on Nov. 13, one of several records set after the 2024 election.
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This article was previously published by Benzinga and has been updated.
Image created using a photos courtesy of Ark Invest and Shutterstock.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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