The chief investment officer of the world’s largest asset manager, Blackrock, says he could see bitcoin going up significantly. “I like assets that are volatile that have upside convexity,” he stated.
Blackrock CIO Sees Significant Upside to Bitcoin
Rick Rieder, Blackrock’s chief investment officer (CIO) of Global Fixed Income, was asked Friday in an interview with CNBC about his view on bitcoin now that the cryptocurrency is legal tender in a country.
Blackrock is the world’s largest asset manager, with about $9.5 trillion in possessions under management (AUM) at the end of the 2nd quarter. Rieder is also the firm’s head of the Fundamental Fixed Income business and head of the Global Allocation Investment Team. He is accountable for approximately $2.4 trillion in possessions.
Rieder began by commenting on the popular opinion that cryptocurrency is either “a hedge or an alternative [currency].” Regarding cryptocurrency as a hedge, he stated, “I’m not sure it’s a really great hedge,” mentioning its connection to equities and threat possessions. Noting that its price can move 15% a day, he reiterated, “I’m not sure it’s a great hedge.”
Regarding cryptocurrency as “an alternative currency,” he believed:
Part of why I own a little piece of bitcoin is I do believe there are more individuals who are going to get in that fray gradually … I like assets that are volatile that have upside convexity. I could see bitcoin go up significantly.
Rieder noted that Blackrock has a “very moderate” amount of cryptocurrency in its portfolio. Emphasized that bitcoin is unstable, he stated he does not see it as a core asset like bonds or stocks. Nonetheless, he sees value in having a small amount as a speculative tool in a portfolio.
In November in 2015, he stated that cryptocurrency was here to remain and could even change gold to a big degree.
