Bitcoin Has Trillions Of Market Cap Potential in 2021
Bitcoin is in the early days given its newfound interest from institutions and its various use cases.
Speaking as part of a panel for the Bloomberg Crypto Summit, viralonline4u the founder of Ark Investment Management said that the largest digital currency has trillions of market capitalization potential.
The increased adoption by institutions this year has been a positive surprise
When you think that the market cap of Bitcoin is roughly $ 950 billion, think of that in the context of an Apple. It is less than half the valuation of Apple and here we are talking about the reserve currency of the world of crypto assets.
We expected institutional investors to start moving. What we did not expect from the institutions was the diversification of their balance sheets and a diversification of their cash assets in Bitcoin.
Bitcoin gained about 4% to $ 50,680 at 11:07 a.m. in New York after plummeting around 13% earlier this week in the worst pullback in a year. ARKK extended its decline to a fourth day amid a broader decline in the tech sector.
Insurance policy
Wood emphasized Bitcoin’s role as a hedge and an insurance policy, viralonline4u especially in a world of low rates and quantitative easing. There are even cases in which it acts as a risk asset.
The dollar is down, viralonline4u which is normally a positive sign for gold, but gold is down at the same time, Bitcoin is up,. Wood also discussed the prospects for approval of a Bitcoin exchange-traded fund in the US, viralonline4u especially if Gary Gensler is confirmed as chairman of the Securities and Exchange Commission.
We’re going to get a lot of attention and the people who are focused on it really know what they’re talking about. Ultimately, viralonline4u you are confident of approval for a publicly-traded product. Michael Sonnenshein, CEO of Grayscale Investments, also spoke at the panel that was moderated by Mike McGlone of Bloomberg Intelligence.
Ark Investment owned 7.3 million shares of the Grayscale Bitcoin
Trust at the end of 2020, viralonline4u according to a filing. The firm indirectly owns the token through its ETF investments in Tesla Inc. and Square Inc. The $ 25 billion ARK Innovation ETF (ARKK) contains both Tesla and Square, viralonline4u at 10.4% and 4.8%. % of the fund, viralonline4u respectively.
Square is the largest stake in the Ark Fintech Innovation (ARKF) ETF, at 9%, and is also in the Ark Next Generation Internet ETF (ARKW). And viralonline4u Tesla is the largest stake in the Ark Autonomous Technology & Robotics (ARKQ) ETF, at 10.6%.
Square said Tuesday that it bought another $ 170 million in Bitcoin,viralonline4u adding to its previous $ 50 million and bringing holdings to about 5% of the company’s cash and equivalents. Tesla also revealed a Bitcoin addition of $ 1.5 billion to its balance sheet earlier this month.
Even before the 450% rally of the biggest cryptocurrency in the last year, viralonline4u Wood was a believer. She told Bloomberg News in 2015 when Bitcoin had just hit $ 500, that she had doubled her money in the currency amid emerging market volatility. Earlier this week, viralonline4u Wood told Bloomberg Radio that she considers her recent price correction to be healthy.
