Ark Investment Study Suggests BTC Value Will Rise by $40,000 if All S&P 500 Companies ‘Allocate 1% of Their Cash to Bitcoin’
According to the findings of a study by Ark Investment Management (AIM), the value of bitcoin can potentially increase by $40,000 if all S&P 500 companies allocate 1% of their cash holdings to the crypto. Similarly, if all these companies were to convert 10% of cash holdings into bitcoin, the value of the crypto asset will potentially rise to $400,000. Institutional Adoption The study findings , which are based on December 1, 2020 data, seem to get validation from BTC ’s price movement after Square and Microstrategy acquisitions. As on-chain data shows, the value of the crypto asset went up after the two companies announced their BTC acquisitions. Still, in making the case for a greater allocation of bitcoin in institutional portfolios, the AIM study says: Untethered from traditional rules and regulations and generally uncorrelated to the behaviour of other asset classes, bitcoin seems to have earned a strategic allocation in well-diversified portfolios. Further, the stu