2024

Bitcoin ETF

Bitcoin

April

ARK Invest’s latest report heralds Bitcoin as a dominant force in the investment world, advocating for a substantial 19.4% portfolio allocation.&nbsp;
The firm’s comprehensive analysis, detailed in its <a href="https://assets.arkinvest.com/media-8e522a83-1b23-4d58-a202-792712f8d2d3/753ac3f8-c89c-4780-81d2-41a2a71d66ab/ARK-Invest_013124_Big-Ideas-2024.pdf" target="_blank" rel="noopener noreferrer nofollow">“Big Ideas 2024” report</a> published on Jan. 31, highlights Bitcoin’s (<a href="https://crypto.news/price/bitcoin/" data-type="link" data-id="https://crypto.news/price/bitcoin/" rel="noopener noreferrer nofollow">BTC</a>) impressive performance and potential future growth catalyzed by several key factors.
Central to ARK’s assessment is Bitcoin’s remarkable return rate. Over the past seven years, Bitcoin has yielded an average annual return of around 44%, starkly outperforming other major asset classes, averaging a return of 5.7%.
This exceptional performance is a pivotal reason behind ARK’s recommendation to allocate 19.4% of an investment portfolio to Bitcoin, a substantial increase from a mere 0.5% allocation observed in 2015.
Bitcoin’s resilience during market fluctuations is also a focal point in ARK’s report. The flagship cryptocurrency <a href="https://crypto.news/bitcoins-strong-recovery-in-2023-outshines-gold-and-sp-500/" rel="noopener noreferrer nofollow">demonstrated notable growth</a>, particularly during the early 2023 collapse of U.S. regional banks, where its <a href="https://crypto.news/bitcoin-has-had-four-months-of-growth-despite-banking-crisis/" rel="noopener noreferrer nofollow">price increased</a> by more than 40%. The resilience not only highlights Bitcoin’s potential as a hedge against counterparty risk and cements its status as a <a href="https://crypto.news/analyst-bitcoin-looks-to-be-long-term-hedge-against-inflation/" rel="noopener noreferrer nofollow">reliable risk-off asset </a>amidst macroeconomic uncertainties.
You might also like: <a href="https://crypto.news/ark-investment-shifts-16m-from-proshares-to-own-bitcoin-etf/" rel="noopener noreferrer nofollow"> ARK Investment shifts $16m from ProShares to own Bitcoin ETF </a>
Looking ahead to 2024, ARK pinpoints several catalysts that could drive Bitcoin’s growth. The report emphasizes the importance of <a href="https://crypto.news/bitcoin-etfs-surge-with-247m-inflow-as-btc-nears-44k-again/" rel="noopener noreferrer nofollow">spot Bitcoin exchange-traded funds</a> (ETFs) for bridging the gap between traditional investors and the cryptocurrency market. Additionally, the upcoming Bitcoin halving, expected in April 2024, is projected to be a <a href="https://crypto.news/bitcoin-btc-could-hit-170k-post-halving-anthony-scaramucci/" rel="noopener noreferrer nofollow">bullish event</a> for the cryptocurrency.&nbsp;
The BTC halving event, which historically aligns with the initiation of bull markets, will reduce Bitcoin’s inflation rate, potentially impacting its value.
ARK’s bullish stance is further supported by its projections on Bitcoin’s pricing with increased global allocation. The report suggests that even a 1% allocation from the $250 trillion global investable asset base could elevate Bitcoin’s price to $120,000. An ambitious 19.4% allocation could skyrocket its value to an astounding $2.3 million. These figures are grounded in Bitcoin’s low five-year <a href="https://crypto.news/bitcoin-and-ethereum-correlation-plunges-to-lowest-since-2021/" rel="noopener noreferrer nofollow">correlation</a> of 0.27 with traditional assets, popularizing its role as a diversifier in investment portfolios.
Lastly, the report indicates a shifting perception of Bitcoin <a href="https://crypto.news/cathie-wood-spot-bitcoin-etf-seen-as-ultimate-endorsement-for-institutional-investors/" rel="noopener noreferrer nofollow">among institutional investors</a>. The transition from viewing Bitcoin as a speculative instrument to a strategic investment is gaining momentum. This shift is exemplified by changing attitudes of key figures in the finance sector, such as BlackRock CEO Larry Fink, who has begun to <a href="https://crypto.news/larry-fink-says-blackrock-seeks-to-democratize-bitcoin/" rel="noopener noreferrer nofollow">recognize</a> Bitcoin’s potential as a “flight to quality.”
Read more: <a href="https://crypto.news/el-salvador-to-stay-committed-to-bitcoin-amid-spot-etf-approval/" rel="noopener noreferrer nofollow"> El Salvador to stay committed to Bitcoin amid spot ETF approval </a>

Bitcoin mentioned as financial powerhouse in ARK Invest’s 2024 market forecast

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