Cathie Wood, the popular fund manager of ARK Invest, is known for making outsized bets on companies that she believes will revolutionize the way we live our lives. Spanning industries as diverse as pharmaceuticals and tech, Wood’s picks may be off the mark sometimes, but her conviction on the themes she believes in is undeterred.

That’s why her belief that Bitcoin (BTCUSD), the world’s largest cryptocurrency, can reach $1.25 million per token is worth taking note of. According to the company’s “Big Ideas 2026 Report,” Wood reckons that the market cap for Bitcoin can reach $16 trillion from its current levels of around $2 trillion. Her case rests on the fact that the newer generation will opt for Bitcoin, instead of gold, to beat inflation.

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Wood & BTC: An Unshakeable (But Secret) Bond

Wood has never publicly disclosed the number or the value of bitcoins held by her fund or by her in her personal capacity. Although she did give a hint a couple of years ago that almost 25% of her personal wealth was attached to the “digital gold.”

However, the very first time she bought Bitcoin was about a decade before that, in 2015, when it was hovering around the $250 levels. At that time, Wood and her team at ARK Invest were collaborating with renowned monetary economist Art Laffer (famous for the Laffer Curve) on a white paper exploring whether Bitcoin could fulfill the three classic functions of money, which are a medium of exchange, a store of value, and a unit of account.

During their research, Laffer pointed out that he had been waiting for something like Bitcoin since the U.S. abandoned the gold standard in 1971. When Wood asked him how big the opportunity could be, he compared the U.S. monetary base at the time ($4.5 trillion) to Bitcoin’s total network value (which was only $6 billion). Struck by the massive asymmetry of that comparison, Wood immediately made a personal investment.

What Lies Ahead?

Wood’s assertions may be music to the ears of Bitcoin enthusiasts who have not had much to cheer this year, as BTC is down more than 16% so far this year. Adding to the woes, significant ETF outflows have certainly not helped matters.

Thus, as the world remains on tenterhooks due to the war in the Middle East, how is Bitcoin shaping up as an investment?