Ark Funds CEO Cathie Wood has been known to make some highly criticized forward-looking predictions. Wood and her colleagues have some of the higher price targets on Wall Street for Bitcoin (CRYPTO: BTC).
Here’s a look at how much an investment could be worth in the future if their price targets are hit.
What Happened: “We are very optimistic about Bitcoin in particular,” Wood said last year, giving the crypto a price target of $400,000.
The bull case comes from more institutional interest in buying Bitcoin. Wood highlighted companies like Tesla Inc (NASDAQ:TSLA), Block Inc (NYSE:SQ) and MicroStrategy Inc (NASDAQ:MSTR) that have added Bitcoin to their balance sheets.
“What’s the reason not to diversify?” Wood asked. If all corporations put 1% to 10% of their cash balance into Bitcoin, the valuation of the coin could rise significantly and could increase the price target further for the coin.
Later in 2021, Wood and Ark Funds started discussing a $500,000 price target for Bitcoin over the next five years. Ark analyst Yassine Elmandjra wrote in a report that Bitcoin’s market capitalization could increase 25-fold in the next decade to $28.5 trillion.
The call for the gain along with gaining share versus gold helps highlight a $1 million price target by 2030 from Ark Funds.
Related Link: How To Buy Bitcoin
Why It’s Important: Ark Funds has remained bullish on Bitcoin and the cryptocurrency remains an active position for the company’s ETFs via companies with exposure to the asset.
Coinbase Global Inc (NASDAQ:COIN) is the sixth largest holding in the flagship Ark Innovation ETF (NYSE:ARKK) at 5.4%. Coinbase is also the largest holding in the Ark Next Generation ETF at 8.1% and the second largest holding in the Ark Fintech ETF (NYSE:ARKF) at 9.6%.
One of the most notorious forward-looking price targets from Wood ended up coming true and proving naysayers wrong. Wood predicted in 2018 that Tesla shares would hit $4,000, which at the time was among the highest public targets. Tesla shares hit a split-adjusted $4,000 in January 2021.
Investing $100 In Bitcoin: A $100 investment in Bitcoin today could prove to be a valuable investment in the future if the price predictions from Cathie Wood and Ark Funds can hit.
Based on a price of $43760.46 for Bitcoin at the time of writing, a $100 investment can purchase 0.002285 Bitcoin.
The $100 investment would be worth the following based on the price predictions from Ark Funds:
- $400,000: $914
- $500,00: $1,142.50
- $1,000,000: $2,285