ARK Invest CEO: BlackRock’s entrance to the crypto market will double the rate of bitcoin

What’s new? ARK Invest founder Cathie Wood has said that the entry of investment firm BlackRock into the crypto space could have a significant impact on the bitcoin rate. Wood’s study, published on YouTube, says that companies that want to use cryptocurrencies, but herewith also want to reduce their volatility, allocate only 2,5% of their portfolio to them. According to Wood, if this rule is applied to the $40 trillion BlackRock, it would result in more than $1 trillion in demand. She added that this level of demand would “more than double” bitcoin’s price.

Cathie Wood’s video

What did Wood add? She also noted another BTC metric that points to possible growth. ARK Invest estimates that bitcoin’s liquid supply is about 14 million coins, with 18-19 million in circulation and only 3 million BTC “truly liquid.” This means a much higher demand for the first cryptocurrency, which will cause the value of the asset to rise, even more, Wood believes.

As of August 10, 11:40 UTC, BTC is trading at $23 084, down by 1,06% in 24 hours, according to Binance.

ARK Invest is a US-based investment company that manages several investment funds. According to Forbes, it is one of the fastest growing and most efficient corporations in the world. It was founded by Cathie Wood in 2014.

BlackRock is one of the world’s largest asset and investment management firms. As of January 2022, it had $10 trillion in assets under management. The company’s shares are traded on the New York Stock Exchange (NYSE) under the ticker BLK. The share price is $696,51, up by 0,03% per day, according to Investing.com.

In August, BlackRock entered into an agreement with the Coinbase exchange, under which its institutional investors will have direct access to cryptocurrencies.

According to the crypto analyst who hosts the YouTube channel InvestAnswers, if BlackRock invests 0,5% of its assets in BTC with a multiplier of 21x, the first cryptocurrency’s capitalization would rise by $1,05 trillion. This would add $75 000 to the price of bitcoin, raising it to $99 000.