1 Top Cryptocurrency to Buy Before It Surges 2,377%, According to Ark Invest's Cathie Wood

Cathie Wood is not known for playing it safe. As the idiosyncratic head of Ark Invest and pioneer of thematic investing

Cathie Wood is not known for playing it safe. As the idiosyncratic head of Ark Invest and pioneer of thematic investing, she’s used to making big bets – and even bigger claims.

She remains a strong supporter of Tesla (NASDAQ:TSLA), backing the struggling electric vehicle maker in the belief it will rake in $5 trillion of a future $10 trillion robotaxi market.

She is also an avid supporter of cryptocurrencies and a huge booster of Bitcoin (CRYPTO:BTC), the granddaddy of them all. Her prediction here? By 2030, Bitcoin will reach $1.5 million per coin, a return of almost 2,400% from its current price. She recently went further and said that if institutional investors allocated 5% of their money to Bitcoin, it would add $2.3 million to her forecast, for a total of $3.8 million per coin.

What makes her believe this?

Institutions will make the difference for Bitcoin

Bitcoin is no longer the Wild West of investing. Sure, it’s still a volatile asset, but the market is vastly different than it was a decade ago. In recent years there has been a huge influx of institutional money, and with that capital has come greater stability. Wood herself helped drive the change.

While a few institutions have been in the market for a while, many more have gotten involved since Wood helped lobby the Securities and Exchange Commission to approve Bitcoin Exchange Traded Funds (ETFs). The first batch of 11 such ETFs was approved in January of this year.

This was a big moment for the industry, as these ETFs offer investors both large and small a much easier way to access Bitcoin. Many brokerages that do not offer cryptocurrency trades are happy to support trading spot Bitcoin ETFs.

Wood believes that if people begin to view Bitcoin not as a risky, volatile asset, but as a stable and even safe asset, institutional investors will shift an even larger portion of their portfolios to this cryptocurrency.

Currently, the majority of the largest financial institutions have less than 1% of their portfolio in ‘digital assets’ and 16% have less than 0.1% (0 was not an option in the survey). Yet the adoption continues. A modest exposure from institutional investors, say 1% or 2%, would still boost Bitcoin’s price significantly, especially if some of its other catalysts materialize.

Adoption as digital gold

This evolving image from speculative ownership to something more stable has led some to call Bitcoin “digital gold.” It is scarce, requires work to ‘mine,’ and its supply is finite. All told, this means it tends to increase in value over time.

The story continues

These qualities and more led Larry Fink, one of the most influential and powerful investors in the world, to call Bitcoin a “legitimate financial instrument.” He believes that it is an excellent asset if you “believe that governments are devaluing their currencies.”

However, unlike gold, Bitcoin is portable and easy to store. Do you know how hard it is to send $10,000 worth of gold bars to someone across the country? With Bitcoin it can be done in seconds. The value of all the gold in Fort Knox can be stored on a flash drive.

As more and more people come to view Bitcoin as digital gold, this could cause a huge influx of money, especially during times of economic turbulence. Wood points to other catalysts, including its use as a means of payment in countries with runaway inflation, by governments as a store of wealth, as a means of transferring funds for cross-border payments, and as a cash equivalent by corporations.

Clearly, there are many ways for Bitcoin to increase in value; the question is how much it will appreciate. I think Wood’s target of $1.5 million and a bull case of $3.8 million are quite unlikely in 2030, but she certainly makes an interesting case. I believe Bitcoin will outperform the market by a wide margin over the next five years and will be a big part of a diversified portfolio for those with high risk tolerance.

Don’t miss this second chance at a potentially lucrative opportunity

Have you ever felt like you missed the boat on buying the most successful stocks? Then you would like to hear this.

On rare occasions, our expert team of analysts provides a “Double Down” Stocks recommendation for companies they think are about to pop. If you’re worried that you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

Amazon (NASDAQ:AMZN): If you had invested $1,000 when we doubled down in 2010, you would have $21,266!*

Apple (NASDAQ:AAPL): If you had invested $1,000 when we doubled down in 2008, you would have $