{"id":24170,"date":"2023-03-21T21:38:25","date_gmt":"2023-03-22T04:38:25","guid":{"rendered":"https:\/\/coinnetworknews.com\/bitcoins-banking-crisis-surge-will-attract-more-institutions-arks-cathie-wood\/"},"modified":"2023-03-21T21:38:25","modified_gmt":"2023-03-22T04:38:25","slug":"bitcoins-banking-crisis-surge-will-attract-more-institutions-arks-cathie-wood","status":"publish","type":"post","link":"https:\/\/coinnetworknews.com\/bitcoins-banking-crisis-surge-will-attract-more-institutions-arks-cathie-wood\/","title":{"rendered":"Bitcoin\u2019s banking crisis surge will \u2018attract more institutions\u2019: ARK\u2019s Cathie Wood"},"content":{"rendered":"
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The value proposition of Bitcoin (BTC<\/a>) is on full display amid the current banking crisis, <\/a>which will only \u201cattract more institutions\u201d to the BTC market over time, ARK Invest CEO Cathie Wood believes.<\/p>\n

Wood shared her thoughts on BTC\u2019s recent price surge<\/a> in a March 21 Bloomberg interview<\/a>, stating its price behavior through the crisis \u201cis going to attract more institutions.\u201d<\/p>\n

\u201cThe fact that Bitcoin moved in a very different way from the equity markets, in particular, was quite instructive,\u201d she added.<\/p>\n

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ARK Investment Management CEO Cathie Wood says the behavior of the Bitcoin’s price through the latest banking turmoil will attract more institutions and investors https:\/\/t.co\/2d8cT7SX3n<\/a> pic.twitter.com\/Eaymh05lhq<\/a><\/p>\n

\u2014 Bloomberg Crypto (@crypto) March 21, 2023<\/a><\/p><\/blockquote>\n

Institutional interest in Bitcoin may have already arrived, according to Oliver Linch, the CEO of Seattle-based crypto exchange Bittrex.<\/p>\n

Linch noted in a March 21 interview<\/a> on The Wolf Of All Streets<\/em>\u00a0podcast that many big banks bought into crypto as an investment product well before the recent banking crisis:<\/p>\n

\u201cThe big talking point of this bear market is institutional interest in crypto. Every big bank now has a substantive crypto desk, not just for trading, but for partnerships as well.\u201d<\/p><\/blockquote>\n

However, he said that there\u2019s still a divide between traditional financial institutions and crypto firms, which has caused headwinds in institutional adoption over the last few months.<\/p>\n

\u201cHistorically, those big players have been the biggest drivers of innovation,\u201d he said, adding that the two sides are currently \u201cstuck in a bit of a rut\u201d and that the \u201cbig change\u201d won\u2019t happen until they stop fighting for superiority. <\/p>\n

\u201cIt\u2019s not crypto versus Goldman Sachs or crypto versus institutions. It\u2019s a race to who can do crypto better.\u201d<\/p><\/blockquote>\n

As for the impact on Bitcoin\u2019s price from the institutional interest, Wood explained in the interview that ARK Invest\u2019s $1-1.5 million BTC price prediction by 2030<\/a> was made on the back of an institutional investor BTC allocation analysis, which estimates most firms would allocate between 2.5% to 6.5% to BTC in their investment portfolios. <\/p>\n

\u201cThese are the sorts of allocations that they would have made to emerging, new categories of assets like real estate in the 70s and small caps in the 80s and 90s,\u201d Wood added.<\/p>\n

Related: <\/em><\/strong>Bitcoin holds $28K due to spot buying, but institutional investors are still selling <\/em><\/strong><\/a><\/p>\n

\"\"
ARK Invest estimates the BTC price towards $1.5 million will be pushed by institutional investors allocating between 2.5-6.5% of their portfolio into BTC. Source: <\/em>ARK Invest<\/em><\/figcaption><\/figure>\n

Linch, on the other hand, believes that \u201caggressive\u201d institutional adoption will come when opportunities become more easily identifiable:<\/p>\n

\u201cShow them a way that it can be done and it can make them money and I guarantee you they won\u2019t stand in the way of that. They\u2019ll be pedal to the metal to exploit that opportunity.\u201d<\/p><\/blockquote>\n

Positive sentiment has surrounded Bitcoin<\/a> following the collapses of Silvergate, Silicon Valley Bank and Signature banks. BTC has surged 43.6% since its most recent low on March 11, compared with a 25.3% increase in the broader crypto market over that time, according to CoinGecko data<\/a>.<\/p>\n

Magazine:<\/strong> Unstablecoins: Depegging, bank runs and other risks loom<\/em><\/strong><\/a><\/p>\n