9 months ago
41 ARTICLE AD
The firm is is cautiously optimistic about Bitcoin's future potential as an asset class.
BlackRock is open to the possibility of increasing its Bitcoin exposure, but several factors, such as adoption and public trust, need to be addressed first, Rick Rieder, BlackRock’s Global Chief Investment Officer of Fixed Income, said in an interview with WSJ. Rieder oversees $2.6 trillion in fixed-income assets at the globe’s largest asset management firm.
“I think that time will tell whether it’s going to be a big part of the asset allocation framework. I think over time people become more and more comfortable with it,” stated Rieder.
Rieder believes people will become more comfortable with Bitcoin, seeing BlackRock’s spot Bitcoin exchange-traded fund (ETF) as the key to increasing accessibility and making Bitcoin easier to manage.
“Today it’s pretty volatile and we use it for when we think there’s some upside potential, more of like an option on something because if there is more and more receptivity now we have more vehicles that people can utilize to get more comfortable with owning it and buying it and selling it and liquidating it,” said Rieder.
According to him, Bitcoin is becoming a more prominent topic in investment discussions, but it might still require further maturation before becoming a mainstream asset allocation choice for most people.
Rieder sees the increasing adoption of Bitcoin as a powerful driver of its future value. He anticipates that as more people use and invest in Bitcoin, its potential for significant growth becomes more realistic, as evidenced by recent price increases.
“As you get more and more people that adopt it as an asset, we think the upside potential is real, which has been recognized recently.”
BlackRock’s newly launched spot Bitcoin ETF currently holds around $5.6 billion worth of Bitcoin, according to data from iShares Bitcoin Trust. Larry Fink, BlackRock’s CEO, views both Bitcoin and Ethereum ETFs as crucial steps toward tokenization, and the firm is seeking approval for a spot Ethereum ETF.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
