Allocations from the $250 trillion global investable asset base into Bitcoin would have a significant impact on its price, according to investment management firm Ark Invest.

In its Big Ideas 2024 report, Ark estimated that Bitcoin’s price could reach a whopping $2.3 million if 19.4% of global assets were allocated towards the leading digital asset.

The firm also determined that a 19.4% allocation would be the optimal percentage to have put in Bitcoin to maximize risk-adjusted returns in 2023. They calculated this based on maximizing the Sharpe Ratio over a rolling five-year time horizon. 

Like many other industry watchers, Ark too believes that a Bitcoin bull run is officially underway, based on the on-chain market mean, which its analysts say has been a “reliable demarcation between risk-on and risk-off Bitcoin markets.”

The report noted that several catalysts await Bitcoin this year, including the most recent spot Bitcoin exchange-traded fund (ETF) approval, the upcoming Bitcoin halving event, wider institutional adoption of crypto, and positive developments when it comes to regulating the industry.

This isn’t the first time Ark Invest has presented an extremely bullish view on the outlook for Bitcoin. Earlier this month, after the U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs, Ark CEO Cathie Wood said in an interview with CNBC that the price of Bitcoin could reach $1.5 million by 2030.

“We think the probability of the bull case has increased with this SEC approval. This is a green light,” said Wood.