The chief investment officer of the biggest asset management firm in the world is calling Bitcoin an asset with staying power.
Rick Rieder, CIO of global fixed income and head of the global allocation team at BlackRock, unveils his stance on Bitcoin in an interview on CNBC.
“Bitcoin is an interesting asset. It is one that has not reached maturity yet…
Some of the hurdles, the volatility etc., make Bitcoin an interesting asset… I think it’s durable. I think it will be part of the investment arena for years to come, but some of these challenges and the volatility around it, regulatory dynamics, etcetera, fiat currency concerns… These challenges are real, and they will be overcome over time and the asset is durable. It’s just not there yet as a normal, stable asset.”
Rieder isn’t the first executive from the $8.7 trillion asset manager to give kudos to Bitcoin. Blackrock CEO Larry Fink said last month that crypto could become a “great asset class,” reversing his stance from years prior when he referred to the space as “an index for money laundering.”
“I’m still fascinated about it, I’m encouraged by how many people are focusing on it. I’m encouraged about the narrative that it may become a great asset class. And I do believe this could become a great asset class…
I don’t believe it’s a substitute for currencies. I think we’re going to have cryptocurrencies of dollars, cryptocurrencies of other currencies. But I don’t believe we should think about crypto as a substitute of currency. But I’m fascinated by it as an asset class.”