5 Reasons Why Cathie Wood's ARK Invest Thinks Bitcoin Prices Could Jump 1,660% to £1.1M by 2030

Investor Cathie Wood's ARK Investment Management was among the first companies to secure approval from the US Securities and Exchange Commission (SEC) to launch a Bitcoin exchange-traded fund (ETF) in 2024. Ark Invest operates multiple ETFs prioritising AI, cryptocurrency, robotics, and disruptive technologies.

Bitcoin's price is off more than 20% from its record high earlier this year, hovering around £63,532 ($82,346) on 18th March. Despite US President Donald Trump's pro-crypto policies, the cryptocurrency has been facing selling pressure, probably due to the uncertainty around trade wars, elevated inflation, and security incidents at major crypto exchanges.

However, Wood forecasts that Bitcoin, with a market capitalisation of £1.2 trillion ($1.6 trillion), could soar by 1,660% in value to £1.14 million ($1.48 million) per token by 2030. The cryptocurrency beat all other asset classes in terms of growth over the past decade. If you purchased £7,715 ($10,000) worth of BTC 10 years ago, it would have turned £2.23 million ($2.9 million) today, returning almost 29,100%.

More people have started viewing the asset as digital gold with a good store of value, and regulatory development to establish a secure framework for investors has continued to drive global adoption.

ARK Invest Highlights 5 Catalysts Lifting BTC Prices

ARK Invest highlighted in a 2023 report that it thinks Bitcoin could become the top currency in emerging markets in the long run. However, El Salvador's decision to adopt Bitcoin as legal tender in 2021 hasn't sparked interest as expected. Most consumers have yet to use BTC as the primary currency, given its volatility and looming regulatory concerns.

ARK also believes that high-net-worth individuals will increasingly hold Bitcoin because it is more difficult for governments to seize than cash and other asset classes. Despite this forecast, the US government has confiscated over 200,000 bitcoins worth £13.11 billion($17 billion). The US government plans to grow its newly announced Bitcoin strategic reserve using tokens confiscated from criminal or civil asset forfeiture proceedings.

Ark is of the view that governments will eventually hold some of their reserves (which are primarily in gold) in Bitcoin. The US strategic reserve for digital assets is a move towards that goal.

Furthermore, the fund manager predicted that up to 50% of the cash investors park in gold could go towards Bitcoin since it is digital and much more portable than precious metals.

Lastly, Wood thinks institutions will gradually allocate a significant portion of their portfolio to Bitcoin due to consistently high returns over the years. The investor believes that ETFs could speed up this trend as these investment instruments minimise risks linked to crypto storage.

Wood even said during Bitcoin Investor Day last year that Bitcoin prices could surpass ARK's forecast to reach £2.93 million ($3.8 million) per token in the long run, implying more than a 4,400% increase in value. However, it would be possible if ETFs lay the groundwork for institutional investors to allocate 5% of their assets to cryptocurrency.

Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn't indicate future returns.