Cathy Wood's Ark Investments adjusts Bitcoin investment to less than 20%

Cathy Wood's Ark Investments adjusts Bitcoin investment to less than 20%


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Cathy Wood's Ark Investments adjusts Bitcoin investment to less than 20%

Cathie Wood's asset management company, Ark Investments, revealed that the ideal investment proportion for Bitcoin is less than 20%. According to its annual report released on the 31st (local time), Wood's company, known as the Money Tree Sister, explained that having a high proportion of Bitcoin in the portfolio can help maximize risk-adjusted returns.

The report also found that Bitcoin has outperformed other major asset classes over a seven-year period, and that allocating 19.4% of total invested assets to Bitcoin last year increased the portfolio's risk-adjusted returns. Subsequently, in 2015, the optimal Bitcoin allocation was presented as 0.5%.

Wood's decision highlighted the low correlation between traditional assets and Bitcoin over the past five years, emphasizing the importance of Bitcoin as a portfolio diversifier and new investment option. The report added, “Globally, investable assets reach $250 trillion, and if institutional investors increase their share of Bitcoin, it could have a significant impact on the price.”

Meanwhile, according to CoinDesk index data, major virtual assets rose 77.8% last year, proving their value as new investment options. Accordingly, Ark Investment's decision is expected to receive attention as a major investment trend. In 2024, E-Coin will be in the spotlight, and there are predictions that now is an opportunity, and more interest in Bitcoin and virtual currency investment is expected in the future.
Source - www.investing.com

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