25.10.2021

BlackRock considers investing in bitcoin as a defensive asset

BlackRock Investment Director Rick Reeder spoke about the company’s interest in Bitcoin as an alternative defensive asset.

BlackRock is the world’s largest wealth manager with $ 8.7 trillion in assets. In a conversation with CNBC, Reeder said they are starting to “do a little bit” of cryptocurrencies, but declined to go into details.

“I feel that technology and regulation has evolved to the point where many are beginning to see it as part of the portfolio, and this is pushing the price up,” Reeder said.

He noted that BlackRock does not make Bitcoin-related recommendations. However, it makes sense for investors with a significant portion of their capital placed in fiat currency to consider buying cryptocurrency, Reeder added. At the same time, he was skeptical about the theory that any investor should invest 1% of their assets in bitcoin.

“I would not name the percentage values. It all depends on what the rest of your portfolio consists of , ”he said.

In December, BlackRock filed two notices with the US Securities and Exchange Commission (SEC) that some of its funds may invest in bitcoin futures. Reader previously admitted that bitcoin could replace gold, as it is “much more functional.”

“Do I see it as a durable mechanism that will largely take the place of gold? Yes, I think so. It is much more functional when compared to the movement of gold bars , ”said CIO BlackRock.

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