LATEST: Cathie Wood’s ARK Invest Highlights 19.4% Bitcoin in 2023 Portfolios

In its annual Big Ideas report for 2024, Cathie Wood’s ARK Invest highlights Bitcoin (BTC) as an essential diversifier for investment portfolios, advocating for an allocation just under 20%. Over the past seven years, Bitcoin has outperformed major asset classes with an annualized return that suggests a 19.4% portfolio allocation in 2023 would maximize risk-adjusted returns. This allocation has significantly increased from 0.5% in 2015 and 6.2% in 2022, underscoring Bitcoin’s growing importance in the investment landscape.

ARK Invest emphasizes Bitcoin’s role not just as an investment option but as a crucial component for diversification, offering unique growth potential among digital assets. With a low five-year correlation to traditional assets, Bitcoin presents notable diversification benefits. Minimal allocations by institutional investors could significantly impact its price, considering the vast $250 trillion global investable asset base.

The report also references Bitcoin’s 77.8% increase over the last year and attributes its recent success to heightened institutional demand.


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