Bitcoin could “rise significantly”, says the CIO of the world’s largest asset manager Blackrock – Markets and prices Bitcoin News
The chief investment officer of the world’s largest wealth manager Blackrock says he can see a significant surge in Bitcoin. “I like volatile assets with an upward convexity,” he said.
Blackrock CIO sees significant benefits for Bitcoin
Rick Rieder, Blackrock’s Chief Investment Officer (CIO) of Global Fixed Income, was asked his opinion on Bitcoin in an interview with CNBC on Friday, now that cryptocurrency is legal tender in one country.
Blackrock is the world’s largest asset manager with approximately $ 9.5 trillion (AUM) of assets under management as of the end of the second quarter. Rieder is also Head of Fundamental Fixed Income and Head of the Global Allocation Investment Team. He is responsible for a fortune of around $ 2.4 trillion.
Rieder began by commenting on the popular belief that cryptocurrency is either “a hedge or an alternative” [currency]. ”Regarding cryptocurrency as a hedge, he said,“ I’m not sure it’s a really great hedge, ”referring to the correlation with stocks and risk assets. Noting that the price can move around 15% per day, he repeated, “I’m not sure it’s a great hedge.”
Regarding cryptocurrency as “an alternative currency,” he said:
One reason I own a little bit of bitcoin is because I believe that over time there will be more people who will get into this battle … I like assets that are volatile and have an upward convexity. I could see Bitcoin rise significantly.
Rieder noted that Blackrock has a “very moderate” amount of cryptocurrency in its portfolio. He stressed that Bitcoin is volatile and said he doesn’t see it as a core value like bonds or stocks. Nonetheless, he sees value in having a small amount in a portfolio as a speculative instrument.
In November last year, he said that cryptocurrencies will stay and even largely replace gold.
Do you agree with Blackrock’s CIO? Let us know in the comment section below.
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