New institutional investor stakes $20 million on Bitcoin

TL;DR Breakdown

• Ark Invest stakes $20 million in Bitcoin
• Ark invest CEO predicts $500,000 Bitcoin price this year
• Investors unperturbed by crypto market crash

New York based investment management firm Ark Invest is the latest institutional investor in the crypto space. The firm, led by popular Bitcoin proponent, Cathie Wood staked $20 million on Bitcoin according to the company’s filing with the SEC.

The recent price dips of Bitcoin have given many investors the chance to accumulate BTC at a relatively low price. A reason Ark Investment keyed into the crypto market.

Prior to their Bitcoin investment, Ark Invest added Bitcoin exposure to their popular funds through investment in firms like Microstrategy and Grayscale Bitcoin Trust fund (GBTC) purchases.

Wood is believed to be the brain behind the new institutional investor (Ark Invest) as she has always expressed admiration for crypto even before now. She advocated for crypto at a time when proponents like Elon Musk were propagating FUD against Bitcoin mining.

She also made Ark Invest stake on shares of Coinbase after they sold a portion of their Tesla holding.

Wood has been a long-time believer in the value of Bitcoin, recently saying that the asset’s $1 trillion market capitalization “is nothing compared to where this will ultimately be.

She predicted that the recent crisis in the market could not hinder Bitcoin, noting that the coin is primed for the 5-digit price by the end of the year. She has said Bitcoin would trade at $500,000 before the year runs out.

Ark’s decision to buy the dip might signal that other potential institutional investors plan to do the same.

Retail, institutional investors still open to BTC amidst crash

Unconfirmed report has it that despite the crash in Bitcoin price by more than 50 percent, demand from retail and institutional investors, especially those who understand the potential it holds for the financial future, has not deterred even in these times.

However, many analysts have been said to have predicted the recent pullback and have pointed that the price cannot indefinitely move in one direction. The shake-ups are necessary characteristics of the market.

It is believed that only the social media frenzy and panic selling from new investors has affected the demand for Bitcoin in a way.

Source: https://www.cryptopolitan.com/institutional-investor-stakes-20m-on-btc/