Bitcoin as Portfolio Diversification: Cathie Wood Highlights Low Correlation Benefits

2026-01-17 21:23:06

Source: CryptoNewsNet Original Title: Cathie Wood calls bitcoin ‘good source of diversification’ for investors seeking higher returns Original Link: According to Ark Invest CEO Cathie Wood, Bitcoin could play a growing role in institutional portfolios as a valuable diversification tool in her 2026 market outlook.

Wood pointed to bitcoin’s low correlation with other major asset classes, including gold, equities and bonds, as a reason asset allocators should take it seriously.

“Bitcoin should be a good source of diversification for asset allocators looking for higher returns per unit of risk,” she wrote.

Wood argued that since 2020, bitcoin has shown weaker price correlations with stocks, bonds and even gold than those assets have with each other, according to Ark’s data. For example, bitcoin’s correlation with the S&P 500 was 0.28, compared to 0.79 for the S&P 500 versus real estate investment trusts, implying that bitcoin’s low correlation with other assets makes it a relatively better bet.

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