Cathie Wood, the CEO of Ark Investments recently said that Bitcoin (BTC) will soon become an integral part of a “balanced portfolio” in addition to stocks and bonds. Furthermore, in a bold statement, Wood added that cryptocurrencies could stabilize very soon and eventually behave like bonds.
Speaking at CNBC’s “Closing Bell” Wood added:
“We think as it becomes a better accepted new asset class … We do think it will behave, actually, I would say more like the fixed income markets, believe it or not”.
On Tuesday, March 9, Bitcoin (BTC) made a surge above $54,000 after staying under pressure over the last week. At press time, BTC is trading at a price of $53,584 with a market cap of $1.0 trillion and is already up 80% year-to-date.
Bitcoin (BTC) has been often touted as “digital gold” and a replacement to the yellow metal, however, its highly volatile nature has made investors question its stability as a hedge asset.
Wood: Bitcoin (BTC) Will Eat Into the Bond Market Share
In another interesting comparison, Wood compared Bitcoin (BTC) to real-estate. Thus, she goes on to add that Bitcoin (BTC) could be part of investors’ balanced portfolio wherein 60% is stocks and 40% as fixed income which is often bonds.
Wood thinks that Bitcoin will slowly eat into half of the fixed income market share aka bonds. She added:
“If you think about bonds from this level, this idea of a 60-40 balanced portfolio is a bit problematic. We’ve been through a 40-year bull market in bonds. We …
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