Kathy Wood stated that by 2026, Bitcoin will become an essential diversified investment tool for institutional investors.

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Ark Invest CEO Cathie Wood predicts that by 2026, Bitcoin will become a key component of institutional portfolios. She believes that Bitcoin’s low correlation with traditional assets makes it a powerful diversification tool. In her 2026 outlook, she points out that Bitcoin’s correlation with the S&P 500 index is only 0.28, while the correlation with REITs (Real Estate Investment Trusts) is as high as 0.79, making it a unique asset class. This view aligns with the growing confidence among institutional investors, such as Morgan Stanley recommending increasing Bitcoin allocation to 4%. However, Jefferies strategist Christopher Wood recently adjusted a model portfolio’s 10% Bitcoin allocation to gold, citing the risk that quantum computing poses to its cryptographic foundation.

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