According to Cathie Wood, the CEO of ARK Invest, Bitcoin is seeing a surge in interest from large institutional investors with significant budgets (BTC).

In a new interview with Barron, Wood claims that institutions are interested in Bitcoin partly because of its lack of correlation with other assets.

"We can see who's becoming invested," and it appears that "strong, institutional investors" are getting involved in [Bitcoin] as well. What is the reason behind their relocation? This is because there is a low correlation of returns between cryptocurrencies, specifically Bitcoin, and other assets such as stocks, bonds, currencies, and commodities.

If assets have a low correlation of returns, [buying] the asset with the low correlation will improve returns while decreasing risk over the long term, according to studies."

Even though she is optimistic about Bitcoin, Wood says that the trend of large firms, such as Elon Musk's Tesla, adding it to their balance sheets caught her by surprise.

The fact that institutions, specifically enterprises, have begun to diversify their cash on the balance sheet into Bitcoin was something we didn't predict when we finished our Bitcoin analysis.

In her subsequent remarks, Wood reaffirmed her original estimate of $500,000 for Bitcoin, adding that a rise in institutional investment may make it a reality in the future.

According to the authors, they chose the $500,000 figure as a Bitcoin price target because they believe that if institutional investors enter the Bitcoin market and dedicate 5 percent of their portfolios to it, the price of Bitcoin will grow by $500,000." We can observe that this is taking place by looking at on-chain analytics."