ARK’s Cathie Wood says Bitcoin’s low correlation and fixed supply make it a powerful diversification tool, after a 360% price surge since late 2022.
- ARK’s 2026 outlook shows Bitcoin’s weekly return correlation to gold at 0.14 and to bonds at 0.06, below links seen among traditional assets.
- Bitcoin’s protocol caps supply growth near 0.8% annually before dropping to ~0.4%, creating structural scarcity as demand from institutions rises.
- Wood says BTC’s 360% gain since late 2022 could push it toward a core role in both retail and institutional portfolios as a diversifier.
ARK Invest CEO Cathie Wood stated in the firm’s 2026 outlook report that Bitcoin will serve as an effective diversification tool for investment portfolios in coming years, according to the report released by the investment management company.
Wood noted that Bitcoin’s (BTC) low correlation with traditional asset classes including gold, stocks, and bonds provides investors with potential for higher returns per unit of risk, the report stated.
An analysis conducted by ARK Invest examining weekly returns between January 2020 and early January 2026 demonstrated Bitcoin’s portfolio diversification characteristics, according to the firm’s data. The correlation coefficient between Bitcoin and gold measured 0.14, compared to the 0.27 correlation between the S&P 500 index and bonds, the analysis showed.
Bitcoin’s correlation with bonds registered at 0.06, while its correlation with the S&P 500 reached 0.28, according to the data. Both figures remain limited compared to correlations between traditional asset classes, the report indicated.
Wood attributed Bitcoin’s long-term value proposition to its supply structure, stating that the Bitcoin protocol strictly limits supply growth. The annual rate of increase in new Bitcoin supply is projected at approximately 0.8% over the next two years, declining to around 0.4% thereafter, according to the forecast. The mathematically determined and predictable supply structure creates natural scarcity, Wood stated in the report.
The combination of limited and predictable supply with increasing global demand has driven Bitcoin’s price approximately 360% higher since the end of 2022, according to Wood. The ARK Invest CEO stated that continuation of these dynamics could position Bitcoin in a more central role in portfolios for institutional and individual investors.
ARK Invest is a New York-based investment management firm specializing in thematic and disruptive innovation strategies.
