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

CoinVoice has learned that, according to the latest market information, ARK Invest CEO Cathie Wood stated in the 2026 outlook that Bitcoin, due to its low correlation with major asset classes such as gold, stocks, and bonds, is expected to provide higher risk-adjusted returns for asset allocators and become an effective portfolio diversification tool in the coming years.

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 0.27 correlation coefficient between the S&P 500 index and bonds. The correlation coefficient between Bitcoin and bonds is the lowest at 0.06, while the highest is with the S&P 500 at 0.28, but still far below the correlations among traditional asset classes.

Wood believes that Bitcoin’s protocol strictly limits its supply growth, with the new issuance rate expected to be about 0.8% annually over the next two years, then slowing to approximately 0.4% per year. This mathematically fixed supply makes it inherently scarce. 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.