BlackRock may increase its exposure to Bitcoin

Rick Rieder, BlackRock’s Global Chief Investment Officer for Fixed Income, suggests the giant is opening up to the possibility of increasing exposure to Bitcoin, but certain factors such as public acceptance and trust need to be addressed first. Rieder oversees fixed income assets worth $2.6 trillion at the world’s largest asset manager.

“I think time will tell whether it becomes an important part of asset allocation. I think over time people will become more comfortable with it.”

blackrock Rick Rieder blackrock Rick Rieder

Rieder believes people will become more comfortable with Bitcoin, seeing BlackRock’s Bitcoin ETF as key to increasing accessibility and making BTC easier to manage.

“Today, it’s pretty volatile, and we use it when we think there’s some potential for growth, like an option on something because if it’s increasingly easy to adopt then we have more means for people to feel comfortable owning – buying – selling – and liquidating it.”

Bitcoin is becoming a more prominent topic in investment discussions, but it may need further maturity before becoming a common asset allocation choice for most people.

Rieder sees the increasing adoption of Bitcoin as a strong driver for its future value. He predicts that as more people use and invest in Bitcoin, its significant growth potential will become more tangible, evidenced by its recent price increases.

“As more and more people see it as an asset, we think the potential for price appreciation is real, which has been acknowledged recently.”

According to data from the iShares Bitcoin Trust, BlackRock’s newly launched Bitcoin ETF currently holds around $6 billion worth of Bitcoin. Larry Fink, BlackRock’s CEO, sees both Bitcoin and Ethereum ETFs as significant steps toward tokenization, and the company is seeking approval for an Ethereum ETF.

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