fbpx

BlackRock CIO On Bitcoin: I Like Volatile Assets With Upside Convexity

September 13, 2021 9:07 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
BlackRock CIO On Bitcoin: I Like Volatile Assets With Upside Convexity

BlackRock’s Rick Rieder owns some Bitcoin (CRYPTO: BTC) and believes its value could go up significantly in the future.

What Happened: In an interview with CNBC’s "Squawk Box," the BlackRock Inc (NYSE:BK) chief investment officer explained the value of holding Bitcoin as a speculative tool.

“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,” he said. “I like assets that are volatile that have upside convexity. I could see Bitcoin, like it has done, go up significantly, but I think it's volatile."

Why It Matters: With nearly $9.5 trillion in assets under management, BlackRock is the world’s largest asset manager.

Although it has yet to disclose any intent to directly acquire and hold cryptocurrency, the asset manager has sizeable holdings in certain crypto mining stocks.

SEC filing from August revealed that BlackRock holds $207 million in Marathon Digital Holdings (NASDAQ:MARA) and $175 million in Riot Blockchain Inc (NASDAQ:RIOT).

In January, BlackRock also moved to include cash-settled Bitcoin futures in two of its funds: the BlackRock Global Allocation Fund and the BlackRock Strategic Income Opportunities Portfolio.

Price Action: At the time of writing, Bitcoin was trading at $44,637, down 2.8% over 24 hours. The market-leading cryptocurrency has lost 14% of its value over the last seven days.

BlackRock shares dropped by 0.6% Friday to close at a price of $916.62.

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to Benzinga Podcasts and our YouTube channel.


Related Articles

Ready For Takeoff? US Bank Launches Crypto Custody

Ready For Takeoff? US Bank Launches Crypto Custody

U.S. Bancorp's (NYSE: USB) bank, U.S. Bank, is launching its own cryptocurrency custody service aimed at institutional investors in partnership with New York Digital Investment Group (NYDIG). read more
Grayscale Will Have A Better Path Forward Than Others In ETF Battle: CEO of Digital Asset Research

Grayscale Will Have A Better Path Forward Than Others In ETF Battle: CEO of Digital Asset Research

Grayscale Investments, the asset manager behind the Grayscale Bitcoin Trust (OTCMKTS: GBTC), has partnered with Bank of New York Mellon Corp (NYSE: BK) to avail its fund accounting services. read more
BNY Mellon Says Fund Performance Hurt By Lack Of Exposure To Bitcoin Stocks

BNY Mellon Says Fund Performance Hurt By Lack Of Exposure To Bitcoin Stocks

Wall Street banking giant Bank of New York Mellon Corp (NYSE: BK) said the performance of one of its exchange-traded funds was considerably impacted by its lack of exposure to crypto stocks. read more
BNY Mellon Invests In Cryptocurrency Custodian Fireblocks

BNY Mellon Invests In Cryptocurrency Custodian Fireblocks

Bank of New York Mellon (NYSE: BK), one of the largest custody banks in the world, has invested in cryptocurrency custodian Fireblocks. What Happened: The strategic investment was part of a $133 million Series C venture capital fundraise led by Coatue, Ribbit, and Stripes. read more