Wood is the voice of the market: why Bitcoin is becoming a key diversification asset

Against the backdrop of growing institutional interest in cryptocurrencies, leaders of the investment industry are actively rethinking the role of Bitcoin in portfolios. Ark Invest CEO Kathy Wood noted in her 2026 forecast that Bitcoin is not just a speculative instrument but a serious source of diversification for asset managers seeking risk optimization.

Bitcoin Demonstrates Independence from Traditional Assets

Wood’s key argument is based on data analysis from Ark Invest, which shows that Bitcoin maintains a significantly weaker correlation with major asset classes compared to how these classes correlate with each other. Since the early 2020s, the low correlation of digital currency with stocks, bonds, and precious metals makes it an attractive component for reducing overall portfolio volatility.

According to Ark Invest calculations, the correlation coefficient between Bitcoin and the S&P 500 index is only 0.28, while the correlation between the S&P 500 and real estate funds reaches 0.79. This statistic illustrates why interest in this asset among conservative portfolio managers is increasing. In Wood’s view, for investors aiming for higher returns at an acceptable risk level, Bitcoin represents an optimal solution.

As of early February 2026, Bitcoin is trading at $78,820, maintaining its position as one of the most stable assets in the short term. This price reflects a gradual strengthening of institutional investors’ confidence in the cryptocurrency market.

How Major Banks Are Reassessing the Role of Digital Assets

The position expressed by Ark Invest’s CEO is supported by some of the world’s largest financial institutions. Morgan Stanley recommended its clients consider opportunistically allocating up to 4% of their portfolios to Bitcoin, highlighting a growing consensus regarding its strategic role. Bank of America also approved its wealth management advisors’ recommendations to adopt a similar approach with a comparable allocation level.

In addition to American giants, CF Benchmarks qualifies Bitcoin as a foundational building block of a portfolio, suggesting that even conservative asset allocations can significantly enhance investment efficiency. Meanwhile, Brazilian asset management firm Itaú Asset Management recommends clients allocate up to 3% to Bitcoin as a hedge against currency fluctuations and market shocks.

Skepticism and Risks: Looking at the Challenges

At the same time, Wood’s position coexists with opposing views. Jefferies investment bank strategist Christopher Wood completely shifted his recommendations in January 2026, replacing a 10% allocation to Bitcoin with gold. The reason for this decision lies in growing concerns about the potential impact of quantum computing development on the security of cryptography underlying Bitcoin’s blockchain.

According to Jefferies’ strategist, future breakthroughs in quantum technology could undermine cryptographic protection and eventually significantly reduce Bitcoin’s attractiveness as a long-term store of value. This stance serves as a reminder of the need for continuous analysis of technological and systemic risks when forming a long-term investment strategy.

Market Development Outlook

Despite disagreements over technological risks, the trend of institutional adoption of Bitcoin seems to be moving in the direction Kathy Wood foresees. The Ark Invest CEO’s argument about low correlation and diversification potential resonates with the practical steps taken by the world’s largest asset managers. Wood envisions a market gaining influence, where digital assets are gradually integrated into traditional investment strategies.

The future will show whether concerns about quantum threats are serious enough to halt this process or if technological development will find solutions to protect cryptography. The current consensus among most major financial institutions points to the first scenario, where Bitcoin consolidates its position as a recognized portfolio diversification tool.