Cathie Wood: Bitcoin will become an effective portfolio diversification tool in the coming years

According to market news, ARK Invest CEO Cathie Wood stated in the released 2026 outlook that Bitcoin, due to its low correlation with major asset classes such as gold, stocks, and bonds, is expected to provide asset allocators with higher unit risk-adjusted returns, becoming an effective portfolio diversification tool in the coming years.

ARK's analysis of weekly returns from January 2020 to early January 2026 shows that the correlation coefficient between Bitcoin and gold is only 0.14, significantly lower than the correlation coefficient of 0.27 between the S&P 500 index and bonds. The correlation coefficient between Bitcoin and bonds is the lowest (0.06), while the correlation with the S&P 500 is the highest (0.28), but still far below the correlations between traditional asset classes.

Wood believes that Bitcoin's protocol strictly limits its supply growth, with an annual growth rate of new issuance of about 0.8% over the next two years, which will then slow to about 0.4% per year. This mathematically fixed supply creates inherent scarcity. She pointed out that the predictable supply pattern, combined with increasing demand, has driven Bitcoin's price up by 360% since the end of 2022.