Katie Wood believes Bitcoin joins stocks and bonds as part of freebitcoinus.xyz

 Katie Wood believes Bitcoin joins stocks and bonds as part of freebitcoinus.xyz

Ark Invest's Katie Wood said on Monday that Bitcoin and other cryptocurrencies could be part of the recommended portfolio for casual investors.

Wood, whose star as an investor rose sharply last year thanks to the strong performance of her flagship ETF Ark Innovation, told CNBC's Closing Bell that she believes volatile cryptocurrencies will eventually resemble bonds.


We think as it becomes a more acceptable new asset class ... We do think it will behave, in fact, I would say, more like fixed income markets, believe it or not. no, said Wood.

Bitcoin soared to new highs after trading below $ 10,000 per coin in September. According to Coin Metrics, the asset surged to nearly $ 58,000 on Feb.21 before cooling off a bit. It traded at around $ 51,700 on Monday.

While Bitcoin is often referred to as digital gold,it does not trade in tandem with precious metals, and its high level of volatility is more reminiscent of assets that are considered riskier. Wood said that Bitcoin price correlates the most with real estate prices at this point.

However, Wood said she believed Bitcoin could stabilize over time and become part of the recommended portfolio for the average investor, which is 60% stocks and 40% fixed income, especially given the high value of bonds compared to history.

If you think of bonds at this level, the idea of ​​a balanced 60-40 portfolio is a bit problematic,Wood said. We have survived a 40 year bond bull market. We won't be surprised if this new asset class becomes part of these interest rates. Maybe 60 equity, 20, 20, said Wood.

Tesla, which has long been one of the largest Ark positions, converted some of its holding cash into bitcoins earlier this year. Other companies are also increasingly adopting cryptocurrency, supporting payments and transfers or actually buying assets.

Ark's flagship fund fell in the early months of 2021 and its change in value hurt some of Wood's largest holdings. The investor said Monday that it remains confident in its strategy and in Tesla, despite recent losses.

Katie Wood believes Bitcoin joins stocks and bonds as part of freebitcoinus.xyz

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