Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
Bitcoin is a better alternative than gold for asset allocators seeking portfolio diversification in the coming years, Ark Invest CEO Cathie Wood says.
"Bitcoin should be a good source of diversification for asset allocators looking for higher returns per unit of risk during the years ahead," Wood said in her outlook for 2026, published on Jan. 15.
Wood cited Bitcoin’s low correlation with other major asset classes since 2020, saying that its correlation with gold was even lower than that between the S&P 500 and bonds.
• Fast Company Calls It a ‘Groundbreaking Step for the Creator Economy' — Investors Can Still Get In at $0.85/Share
• Sam Altman Says AI Will Transform the Economy — This Platform Lets Investors Back Private Tech Early
Wood’s recommendation comes despite gold’s outperformance last year. The precious metal surged 65% in the year, while Bitcoin declined by 6%.
Wood attributed gold’s strength to global wealth creation outpacing the approximately 1.8% annualized increase in the metal’s supply. However, she suggested that the current dynamics may shift as higher prices incentivize miners to boost production. She said this was not possible with Bitcoin, which has a fixed supply.
Bitcoin’s supply is projected to grow by 0.82% per year over the next two years, then by 0.41% thereafter, Wood said. The data suggests that inflows could have a bigger impact on Bitcoin than gold going forward.
Wood also said gold’s price was at "extreme" levels, citing the ratio of its market cap to the U.S. M2 money supply, which most recently stood at 150%. The ratio has been higher only once in the past 125 years, during the Great Depression, she said. She added that sustained declines in the ratio have coincided with strong equity market returns.
Trending: This investment firm leverages expert insights and a 2.40x net equity multiple to help accredited investors capitalize on 2026 multifamily market trends—read the full forecast now.
Fundrise isn't a newcomer to private markets. The company has been operating for over a decade and manages billions of dollars on behalf of hundreds of thousands of clients. Their venture capital offering was built specifically for individual investors, with low minimums, diversification, and a long-term focus on private technology companies that often remain private for years before going public. They are looking for investors with a $10 investment minimum.