Cathie Wood, billionaire and CEO of Ark Invest said Monday, cryptocurrencies and Bitcoin could soon become a part of the recommended portfolio for average investors.
Cathie, who rose to fame last year from her flagship Ark Innovation ETF (NASDAQ: ARKK), said in an interview on CNBC’s ClosingBell that the highly volatile digital currencies are similar to bonds.
“We think as it becomes a better accepted new asset class … We do think it will behave. Actually, I would say more like the fixed income markets, believe it or not,” Wood said.
Bitcoin, the largest cryptocurrency by both price and market capitalization reached an all-time high of $58,000 on February 21. However, the digital currency saw a severe correction in late February when it plunged to $45,000. Bitcoin is trading at $56,000 as of this writing.
The digital currency often referred to as “digital gold” has caught the attention of large financial institutions.
For instance, MicroStrategy lifted its investment in Bitcoin to a striking $4 billion while the electric car manufacturer Tesla (NASDAQ: TSLA) invested $1.5 billion in the digital token. Tesla — one of Ark’s largest positions had driven the digital currency to its all-time-high in February. The U.S. electric car disclosed last month that it had invested $1.5 billion in Bitcoin, leading to a bullish rally for the digital currency and other altcoins.