Cathie Wood Advocates 5% Bitcoin Allocation As Institutional Adoption Grows
• Cathie Wood believes the optimal bitcoin allocation is roughly 5% on average, though it has risen over time from under 0.5% in 2015 • Bitcoin has evolved to be both a risk-on and risk-off asset, appreciating during the regional bank crisis in 2020 • Institutional investors have not significantly allocated to bitcoin yet despite it being a new, uncorrelated asset class • The maximum number of bitcoins will be 21 million, so it's a scarce asset getting scarcer over time • Wood thinks more asset allocators will consider bitcoin given its diversification benefits and flight to quality status