BlackRock Financial Management’s chief investment officer, Rick Rieder, spoke to CNBC earlier today, wherein he hinted at the world’s largest asset management company’s seemingly inevitable foray into Bitcoin (BTC). In the network’s Squawk Box program, Rieder confirmed that BlackRock is indeed actively flirting around the concept. While he still identified the crypto as volatile, Rieder notably acknowledged that some investors today are now looking for more inflation-resistant alternatives.
According to Rieder, the current crypto technology and the regulations associated with it have evolved enough to capture the public’s confidence. Now, a remarkable number of people have since deemed the asset as portfolio-worthy. This also explains the ongoing massive influx of high-end institutions, such as Tesla and Mastercard, into BTC, which propelled the crypto to record-breaking highs.
Rieder then stated that it just makes sense for BlackRock to hold a portion of it as well. However, he did not confirm any particular target holding or allocation. This seemingly also explains the firm’s SEC filings last month that suggests the possibility of BlackRock incorporating BTC futures in its funds. That being said, many believe that BlackRock is still far from finally offering a BTC fund. However, hints of adoption – such as this – are a welcome development, especially to crypto enthusiasts.