BlackRock Plans to Increase Bitcoin Holdings

By
Vincent Parks
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BlackRock’s Chief Investment Officer Rick Rieder announced plans to increase the company’s Bitcoin (BTC) holdings. Speaking in the Wall Street Journal’s Take On the Week series, Rieder, who oversees global fixed income and is the head of global allocation at BlackRock, claimed that the asset management giant only holds a very small amount of BTC.

BlackRock’s Chief Investment Officer Rick Rieder announced plans to increase the company’s Bitcoin (BTC) holdings. Speaking in the Wall Street Journal’s Take On the Week series, Rieder, who oversees global fixed income and is the head of global allocation at BlackRock, claimed that the asset management giant only holds a very small amount of BTC.

Investment Process in Bitcoin

The renowned CIO mentioned that BlackRock’s exposure to BTC could evolve along with the public’s attitude towards the market-leading cryptocurrency. He also suggested that a rise in cryptocurrency adoption could lead to a noticeable increase in the value of cryptocurrencies. The CIO said in his statements:

Whether this will become a big part of the asset allocation framework over time… time will tell… I think people are becoming increasingly comfortable with it over time. If there’s increasing demand, we now have more tools that people can use to be comfortable owning it, buying it, selling it, and liquidating it… As more people adopt it as an asset, we think so too. The recently perceived upward potential is real.

Comparing BTC and Gold

Currently the world’s largest asset manager, BlackRock, successfully launched the iShares spot Bitcoin exchange-traded fund (ETF) last month and reportedly amassed billions of dollars worth of BTC to back it. In an interview on CNBC’s Squawk Box, BlackRock CEO Larry Fink said he believes Bitcoin is a legitimate store of value that could provide protection during uncertain times. The expert concluded his remarks by saying:

I believe in Bitcoin because I see it as an alternative source for wealth preservation. I never believe it will be a currency. I think it’s an asset class. We will create cryptocurrencies. We will use technology for this. We will use blockchain… If the world becomes more fearful, if people fear geopolitical risks, their own risks, I believe Bitcoin will rise. It’s no different from what gold has represented for thousands of years. It is an asset class that protects you. And unlike the new gold we produce, we are almost at the ceiling of the amount of Bitcoin that will be created.

Source:coin-turk.com

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