BlackRock Executive Believes Bitcoin Price Could Rise Dramatically

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BlackRock CIO Rick Rieder told CNBC’s Squawk Box on Thursday that he owns Bitcoin and that he believes its price could rise “significantly” in the future.

An executive of the world’s largest asset manager, with $ 9.49 trillion in assets under management, Rieder expanded on his thoughts on Bitcoin, describing it as an alternative currency whose future price movement will likely be driven by adoption. increased.

“Part of the reason I own a small piece of Bitcoin is that I think there are more people going to get into this fray over time,” he said. “I like volatile assets that have upward convexity. I could see Bitcoin, as it did, increase dramatically. “

As a speculative tool, Rieder said it helps to hold Bitcoin.

In August, it was reported that BlackRock had allocated more than $ 382 million to shares in mining giants Bitcoin Marathon Digital Holdings and Riot Blockchain.

An uncovered SEC file dated June 30 shows that Blackrock bought significant shares of Bitcoin mining companies, which it now owns in certain funds.

BlackRock’s continued interest in Bitcoin is testament to the influx of large, traditionally conservative financial institutions that are increasing their exposure to Bitcoin through traditional stocks and other traditional investment vehicles such as Grayscale Bitcoin Trust.

In January, Blackrock filed with the SEC to include cash-settled Bitcoin futures contracts for the BlackRock Global Allocation Fund and the BlackRock Strategic Income Opportunities Portfolio, according to Forbes.

Notably, BlackRock’s investment in Bitcoin mining comes after U.S. Bitcoin mining companies set to profit from China’s mining ban and the global decline and reallocation of hash power. who as a result.

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