ARK Invest founder and CEO/CIO Cathie Wood finds that the world's largest asset manager, BlackRock's entry into the crypto sector may have a significant effect on the price of Bitcoin.
Several days ago, crypto exchange Coinbase revealed a collaboration with BlackRock with the aim to offer crypto trading to wealthy customers.
According to Cathie Wood, the partnership is another legitimization of Bitcoin and crypto generally as a new asset category. She said in a webinar that ARK Invest carried out studies about institutional investors and the crypto industry.
Based on the analysis, BlackRock's presence in crypto will increase the market cap of Bitcoin by over $1 trillion in increased demand as the BTC supply is low. Wood mentioned the illiquid supply of $14 M as there are many hodlers.
The ARK Invest CEO says the demand can drive the Bitcoin price much higher. Currently, the coin trades at around $24,000, increasing by 3% in the last 24 hours.