In in interview with CNBC, Wood went on to state that Bitcoin is currently closely correlated with the housing market, in spite of comparison with the S&P500 since the turn of the month.
Typically, balanced portfolios comprise of 60% stocks and 40% fixed income on bonds. Woods now believes that half of the allocation for bonds will be focused on cryptocurrencies.
“We think as [cryptocurrency] becomes a better accepted new asset class… We do think it will behave, actually, I would say more like the fixed income markets, believe it or not,” Wood said.
“If you think about bonds from this level, this idea of a 60-40 balanced portfolio is a bit problematic,” She added. “We’ve been through a 40-year bull market in bonds. We would not be surprised to see this new asset class become a part of those percentages. Maybe 60 equity, 20, 20.”
ARK’s largest holding is Tesla, however it’s worthing noting that the TSLA share price has tumbled dramatically since it announce a $1.5 billion Bitcoin investment in January.
At the time of writing Bitcoin is trading at $54,700, 6.5% lower than its all-time high that formed in February.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.