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ARK Invest CEO Cathie Wood says large institutional entities with strong hands are moving into Bitcoin (BTC) in a hurry.

In a new interview with Barrons, Wood says that institutions have their eye on Bitcoin partially because of its lack of correlation with other assets.

We can see whos moving in and it looks like strong, institutional holders are moving in [to Bitcoin]. Why are they moving in? Because the correlation of returns among crypto, especially Bitcoin, and other assets stocks, bonds, currencies, commodities are very low.

Studies tell us that if theres a low correlation of returns among assets, [buying] that asset with the low correlation, you will be raising returns and lowering risk over time.

While bullish on BTC, Wood said the trend of companies such as Elon Musks Tesla adding it to their balance sheet caught her by surprise.

What we didnt expect when we did our own study on Bitcoin, we didnt expect institutions, mainly corporations, to begin diversifying their cash on the balance sheet into Bitcoin.

Wood went on to maintain her previous Bitcoin price prediction of $500,000, saying that an uptick in institutional investing could make it a reality.

The reason weve used the $500,000 mark for a Bitcoin price target is that if institutional investors move into Bitcoin and allocate 5% of their portfolios to it, by our estimates Bitcoin will go up by $500,000. We can tell this is happening by looking at on-chain analytics.

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Strong Institutional Holders Moving Into Bitcoin, According to Cathie Wood of ARK Invest - The Daily Hodl