CIO of World’s Largest Asset Manager Says Bitcoin Could ‘Increase Significantly’

CIO of World's Largest Asset Manager Says Bitcoin Could ‘Increase Significantly'

During an interview with Rick Rieder, managing director at BlackRock, the world’s biggest asset manager, revealed why he owns bitcoin when asked a few days back. The most intriguing aspect of the conversation is that BlackRock seems to have revealed the first time that it owns Bitcoin. The BlackRock CIO stated back in November 2020 that he did not hold Bitcoin in any of his portfolios.

BlackRock was established in 1988 and began operating in one room with just eight employees. On 1 October 1999, it placed its Initial Public offering on the New York Stock Exchange for $14 a share. The Chief Investment Officer of Blackrock, the largest asset management worldwide, thinks that bitcoin may grow considerably.

This time, Rick Rieder, Blackrock’s Global Fixed Income Chief Investment Officer (CIO). Was questioned in an interview with CNBC Friday about his opinion on Bitcoin. Now that cryptocurrency is legal in a nation.

Considering cryptocurrency as “an alternative currency,” he mentioned:

“Part of why I own a small piece of bitcoin is I do think there are more people who are going to enter that fray over time … I like assets that are volatile that have upside convexity. I could see bitcoin go up significantly.”

May Even Replace Gold Substantially

Rieder stated that the bitcoin in Blackrock’s portfolio, “very moderate.” He stressed that Bitcoin is volatile. Also, said he doesn’t consider it a fundamental asset such as bonds or equities. However, he finds merit in keeping a modest amount in a portfolio as a speculative tool.

Blackrock is the world’s largest asset manager and at the end of the second quarter controlled approximately $9.5 trillion (AUM). Rieder is also Head of the Basic Fixed Income Business and Head of the Global Investment Allocation Team. The assets are about $2.4 trillion.

He said that bitcoin is here to stay, last year in November and may even substantially replace gold.

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A trader himself, Rossi has 7 years of experience trading in the forex market and the passion for writing has brought him to Newscrypto. He is the perfect combination of market knowledge and writing skills, making him one of the most sought-after writers on cryptocurrency.