BlackRock CIO says the asset management giant is 'dabbling' in bitcoin
February 17, 2021, 10:00AM EST
1 min read
Asset management giant BlackRock is taking notice of bitcoin as investors look for alternative stores of value, according to chief investment officer Rick Rieder.
Rieder commented on BlackRock's interest during an interview with CNBC's Squawk Box Wednesday morning. He said the asset management giant "is starting to dabble" in the cryptocurrency, but did not elaborate further on what that means for its operations.
Rieder said that interest in bitcoin is growing as people look for alternative stores of value. "My sense is the technology has evolved and the regulation has evolved to the point where a number of people find it should be part of the portfolio, so that's what's driving the price up," he commented.
BlackRock is not yet making any recommendations surrounding bitcoin, according to Rieder, but since many are holding more cash, allocating some portion to crypto "seems to make some sense." However, he remained skeptical of the popular theory that everyone should put one percent of their assets into bitcoin.
"I wouldn't put a number on the percentage allocation one should have, it depends on what the rest of your portfolio looks like," he said.
As previously reported, regulatory filings indicated that certain funds it operates were on the cusp of buying bitcoin futures.
Gemini Galactic, an affiliate of cryptocurrency exchange Gemini, received approval from the Financial Industry Regulatory Authority (FINRA) to operate a broker-dealer registered with the SEC and is now a FINRA member.