BlackRock, the world’s largest asset manager with over $ 7.3 trillion in assets under his management, has become interested in BTC these days when the Bitcoin price is over $ 51,000.
“Bitcoin surpasses even people’s imagination”
Speaking on CNBC’s Squawk Box, BlackRock CIO Rick Rieder announced that his company was “dealing” with BTC. During the interview, Rieder said that although the volatility of crypto is currently “extraordinary”, he believes it has even surpassed “many people’s imaginations”.
More and more people are investing in crypto assets looking for stores of value and more assets that could rise in value, Rieder said. As BlackRock started “dealing” with Bitcoin, Rieder was skeptical when asked about the common recommendation that everyone should allocate 1% of their portfolio to Bitcoin:
I wouldn’t put a number in the percentage of allotment someone should have, it depends on what the rest of your portfolio looks like.
What raises the BTC price?
Rieder added that technology and regulations have evolved to the point where they believe cryptocurrencies should be part of their portfolio, and he believes that this is what raises the price of Bitcoin.
When asked about what might happen down the road, Rieder stated that diversifying a portfolio to include crypto assets made “sense” because companies were holding “too much cash” as interest rates no longer function as a hedge.
Note that BlackRock has given its at least two funds the ability to invest in Bitcoin futures, according to the updated documentation for its two funds, which include cash-paid BTC futures among the assets currently allowed to purchase.
Larry Fink, co-founder, chairman and CEO of the asset manager, said in an interview in December last year that he believes Bitcoin “captures the attention and imagination of many people.”