Cathie Wood, a founder of ARK Invest, believes that BlackRock’s move into the crypto industry might have enormous repercussions for Bitcoin’s price (BTC).
Coinbase, the largest cryptocurrency exchange in the United States, announced a partnership with BlackRock, the most effective asset management in the world, to offer bitcoin trading to rich customers last week.
In a recent YouTube video, Wood reveals that her organisation researched institutions entering into crypto. According to the survey, institutions who want crypto access while minimising volatility would invest 2.5% of their holdings in crypto.
Wood observes that if the 2.5 percent guideline were applied to BlackRock’s $40 trillion platform, the resulting demand would exceed $1 trillion. According to the ARK Invest CEO, this order amount would “more than double” Bitcoin’s value. Wood also observes that another Bitcoin statistic suggests BTC might increase much further.
“According to our estimations, 14 million out of the about 18-19 million Bitcoins in circulation are illiquid.” Moreover, according to our estimations, just three million units are liquid. Therefore, a $1 trillion rise in demand would likely result in a price increase far more than the doubling I just indicated.”
BTC is now selling at $23,797 at the time of this writing. The leading cryptocurrency by market capitalization has gained over 3 percent during the previous 24 hours.