Cathie Wood: Bitcoin Will Become an Effective Portfolio Diversification Tool in the Coming Years

Odaily News ARK Invest CEO Cathie Wood stated in the released 2026 outlook that Bitcoin's low correlation with major asset classes such as gold, stocks, and bonds makes it a powerful tool for portfolio diversification and achieving higher returns per unit of risk.

ARK's analysis of weekly returns from January 2020 to early January 2026 shows that Bitcoin's correlation with gold is moderate at 0.14, significantly lower than the S&P 500's correlation with bonds at 0.27. Bitcoin has the lowest correlation with bonds (0.06), a slightly higher correlation with gold and Real Estate Investment Trusts (REITs), and the highest correlation with the S&P 500 at 0.28. Even at its peak, Bitcoin's correlation remains far below that of traditional asset pairs, such as the 0.79 correlation between the S&P 500 and REITs.