Ark Invest CEO Cathie Wood has highlighted Bitcoin as a valuable diversification tool for institutional portfolios in her 2026 market outlook. Wood emphasized Bitcoin's low correlation with major asset classes like gold, equities, and bonds, suggesting it offers higher returns per unit of risk. According to Ark's data, Bitcoin's correlation with the S&P 500 is notably lower than that of other assets, making it an attractive option for risk-adjusted portfolios. Despite Wood's bullish stance, Jefferies strategist Christopher Wood has reversed his previous recommendation for a 10% Bitcoin allocation, citing potential security risks from advances in quantum computing. Meanwhile, other financial institutions, including Morgan Stanley and Bank of America, have endorsed modest Bitcoin allocations, underscoring its growing acceptance as a portfolio component. Itaú Asset Management also supports Bitcoin as a hedge against market volatility.