Crypto News

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.

Ark Investment Study Suggest BTC Value Will Rise by $40,000 if All S&P 500 Companies "Allocate 1% of Their Cash to Bitcoin"

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 study findings also show that during the past decade, “bitcoin is the only major asset with consistently low correlations to traditional asset classes.”

Ark Investment Study Suggest BTC Value Will Rise by $40,000 if All S&P 500 Companies "Allocate 1% of Their Cash to Bitcoin"

Less Hype During 2020 Bull Market

Meanwhile, in addition to the price predictions, the study finds that the last bitcoin rally was driven less by hype. According to the study summary, “bitcoin’s search interest is low relative to the increase in its price.” Consequently, as bitcoin price neared all-time highs, the digital asset’s “Google search interest was at 15% of its all-time high.”

if (!window.GrowJs) { (function () { var s = document.createElement(‘script’); s.async = true; s.type = ‘text/javascript’; s.src = ‘https://bitcoinads.growadvertising.com/adserve/app’; var n = document.getElementsByTagName(“script”)[0]; n.parentNode.insertBefore(s, n); }()); } var GrowJs = GrowJs || {}; GrowJs.ads = GrowJs.ads || []; GrowJs.ads.push({ node: document.currentScript.parentElement, handler: function (node) { var banner = GrowJs.createBanner(node, 31, [300, 250], null, []); GrowJs.showBanner(banner.index); } });

Another key takeaway from the study is AIM’s assertion that “bitcoin offers one of the most compelling risk-reward profiles among assets.” In the findings, AIM says:

As our analysis suggests, it could scale from roughly $500 billion to $1-5 trillion in network capitalization during the next five to ten years.”

Consequently, AIM says “capital allocators should consider the opportunity cost of ignoring bitcoin as part of a new asset class.” In the meantime, the study suggests bitcoin’s apparent acceptance could well “set the stage for ethereum and a new wave of financial experimentation.”

Do you agree with Ark Investment’s view that BTC value will skyrocket if all S&P 500 companies buy the crypto? You can tell us what you think in the comments section below.

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of CoinChapter and CoinChapter does not assume any responsibility or liability for the same.

(This story has not been edited by CoinChapter staff and is auto-generated from a syndicated feed.)
0 Comments
Inline Feedbacks
View all comments
CoinChapter

Founded in 2015, Coinchapter.com has become one of the leading resources for the crypto asset community. Created by a small group of cryptocurrency enthusiasts, Coinchapter.com was built to provide new members of the crypto asset community with unbiased listings of cryptocurrency exchanges and retail options that would allow them to buy the crypto assets that they wanted, how they wanted and at the price they wanted.

Related Crypto News

Cardano(ADA) Becomes Second Biggest Unicorn In Crypto Valley
Switzerland’s Crypto Valley released its CV Top 50 report. Compiled in partnership with PwC, the report lists Cardano(ADA) as...
Dogecoin Now Being Accepted By The Dallas Mavericks
Dogecoin continues to move beyond the idea that it is simply a meme token. The Dallas Mavericks announced that...
Ripple’s Chairman Files To Remove SEC Lawsuit Over XRP Sale
The Legal counsel of Ripple Executive Chair Chris Larsen is trying to get his name removed from the US...
Gemini Exchange Launches Dedicated Service “Gemini Fund Solutions”
Gemini Crypto exchange and the custodian has launched a new dedicated service called Gemini Fund Solutions.
Crypto.com Raises $200 Million For Cryptocurrency Startups
Crypto.com announced the launch of Crypto.com Capital. Its venture arm has set aside $200 million to invest in promising...
Ethereum (ETHUSD) Trapped Between Short-Term Moving Averages as Powell Scares
Key Ethereum Takeaways Ethereum wobbled between profits and losses on Thursday as traders waited for clear policy direction from...

Featured Crypto News

Cardano(ADA) Becomes Second Biggest Unicorn In Crypto Valley
Switzerland’s Crypto Valley released its CV Top 50 report. Compiled in partnership with PwC, the report lists Cardano(ADA) as...
Dogecoin Now Being Accepted By The Dallas Mavericks
Dogecoin continues to move beyond the idea that it is simply a meme token. The Dallas Mavericks announced that...
Gemini Exchange Launches Dedicated Service “Gemini Fund Solutions”
Gemini Crypto exchange and the custodian has launched a new dedicated service called Gemini Fund Solutions.
Crypto.com Raises $200 Million For Cryptocurrency Startups
Crypto.com announced the launch of Crypto.com Capital. Its venture arm has set aside $200 million to invest in promising...
Ethereum (ETHUSD) Trapped Between Short-Term Moving Averages as Powell Scares
Key Ethereum Takeaways Ethereum wobbled between profits and losses on Thursday as traders waited for clear policy direction from...
Kings Of Leon To Become First Band To Release Full Album As NFT
Kings of Leon will release their new album, titled ‘When You See Yourself’ on Friday. They will be releasing...