BlackRock chief investment officer Rick Rieder today on CNBC said that their firm has started to dabble into Bitcoin just days after America’s oldest custody bank BNY Mellon announced Bitcoin and crypto custody service. During the interview, Rieder said that the technology of Bitcoin has evolved to a point where asset managers and investors think it should be a part of their investment portfolio.
” I won’t comment or give a number on how much BlackRock holds in its portfolio, however looking at its growing demand I would say we have started to dabble in it. “
“My sense is that technology and regulation has evolved to the point where a number of people think it should be a part of their portfolio.”
"My sense is that technology and regulation has evolved to the point where a number of people think it should be a part of their portfolio." @RickRieder explains the record moves higher in #BTC: pic.twitter.com/XLsGA9kYjc
— Squawk Box (@SquawkCNBC) February 17, 2021
Rieder’s comment comes just days after BlackRock invested in Bitcoin Futures and has also increased its exposure in MicroStrategy’s stocks showing its bullish stance towards the top cryptocurrency. However, only in 2017, just like many other financial giants BlackRock CEO has discarded bitcoin calling it a sophisticated money-laundering scheme.
BlackRock Bitcoin Dabbling Signals More Financial Giants Could Follow
BlackRock is the world’s largest asset manager with nearly $7 trillion worth of assets under its management, their growing interest in Bitcoin could hint at the changing stance of financial institutions towards the top cryptocurrency. The recent comment by Reider only reinforces the bullish sentiment and even suggests that the world’s largest asset manager has probably already bought bitcoin.
— Raoul Pal (@RaoulGMI) February 17, 2021
The past week has not just been significant because of Bitcoin’s new all-time-high above $52,000 but mostly because a slew of companies including MasterCard, Twitter, Uber, JP Morgan, Goldman Sachs, and many others expressed a desire to integrate bitcoin into their company in one form or other. While many institutional giants are looking to use it as a treasury reserve asset many others are looking to offer employee and merchant payment in Bitcoin.