Rick Rieder, chief investment officer of Blackrock, said that even with Bitcoin’s recent price climb, there is still a big possibility that it can go even higher. Rieder added he likes assets that are volatile and has an “upside convexity.”
BlackRock is currently the world’s biggest asset manager, with about $9.5 trillion in assets under management (AUM) at the end of the second quarter. Rieder is also serving as the company’s head of the Fundamental Fixed Income business and head of the Global Allocation Investment Team.
The CIO was recently interviewed by CNBC and was asked about some of the hottest topics in the crypto world today, including Bitcoin Law finally taking effect in El Salvador.
May go up significantly
“Part of why I own a small piece of Bitcoin is I do think there are more people who are going to enter that fray over time… I like assets that are volatile that have upside convexity. I could see Bitcoin go up significantly,” Rieder said.
He said that for him, Bitcoin is either a hedge or an alternative currency, but he conceded that he is not actually sure if it’s really a great hedge.
Very moderate
Rieder also highlighted that, unlike other companies that are aggressively filling their balance sheets with Bitcoin assets, Blackrock has a “very moderate” amount of cryptos in its portfolio.
The chief investment officer said he does not see the crypto as a core asset like bonds or stocks, but he agrees that it is necessary to have a small number of cryptos in anyone’s portfolio.
Last November, Rieder said that cryptocurrencies wouldn’t just be a fad and that they even have the massive potential to replace gold.
Image courtesy of Cointelegraph News/YouTube
Source: https://bitcoinerx.com/blockchain/blackrock-cio-said-bitcoin-could-reach-new-heights/
