Blackrock, the world’s largest wealth manager with nearly $ 9 trillion in assets under management, has started investing in Bitcoin. The company’s chief investment officer shares his view on what is driving the price of cryptocurrency soaring, saying that technology and regulation have evolved so that Bitcoin should be part of their portfolio. In addition, people are looking Investments that could rise if inflation and debt rise.
Blackrock has entered the Bitcoin room
Rick Rieder, Blackrock’s chief investment officer for global fixed income, spoke about bitcoin in an interview with CNBC on Wednesday. The New York-based asset management company had assets of $ 8.68 trillion at the end of the fourth quarter.
Rieder confirmed that Blackrock has started looking into Bitcoin. When asked which portfolio allocation should be included in the cryptocurrency, he replied, “I wouldn’t give a number to the percentage allocation you should have. [since it] depends on what the rest of your portfolio looks like. “Blackrock’s Chief Investment Officer stated:
Volatility is extraordinary these days, but look, people are looking for valuable warehouses. People are looking for places that could appreciate in value assuming inflation goes up and debt goes up. That’s why we started to deal with it a little.
In filings with the SEC in January, Blackrock announced plans to add Bitcoin futures to two of its funds: Blackrock Strategic Income Opportunities and Blackrock Global Allocation Fund.
Bitcoin has rapidly gained popularity with institutional investors. Other companies are relying on the cryptocurrency, including Elon Musk’s Tesla, who invested $ 1.5 billion in Bitcoin and will soon accept the cryptocurrency as a means of payment for its products. Last week, Mastercard announced that certain cryptocurrencies would be allowed directly on their network, and BNY Mellon unveiled a crypto unit to provide Bitcoin services to customers.
Commenting on the spectacular rise in the price of Bitcoin, Blackrock’s Chief Investment Officer said: cryptocurrency is here to stay and could replace gold:
In my opinion, technology has moved on, and regulation has moved on to the point that some people think it should be part of the portfolio. So this is what drives the price up.
Bitcoin price hit an all-time high again on Friday, pushing market capitalization to over $ 1 trillion. At the time of writing, the BTC price is $ 53,720.
The Chief Investment Officer of the world’s largest asset management company said: “We hold a lot more cash than before. That’s because duration doesn’t work and interest rates don’t act as a hedge. “Rieder stated that he” would not advocate any particular allocation or target participation, “he concluded:
Diversification into other assets makes sense. It makes sense to me to keep some of what you have in cash on crypto.
What do you think of Blackrock entering the Bitcoin space? Let us know in the comments below.
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