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The world’s largest asset manager, BlackRock, is looking into Bitcoin. This was confirmed by the managing director of the company, Rick Rieder, today.
- Rick Rieder, the managing director of BlackRock, the world’s largest asset manager, confirmed that the company is looking into Bitcoin. “We’ve started to dabble a bit into it,” he said, refusing to put a target allocation the company has.
- In the interview with CNBC’s SquawkBox, Rieder did say that diversifying one’s portfolio in the current economic reality does make sense. He also said that BlackRock is currently sitting on a lot more cash than they have historically had because traditional hedges don’t work.
We’re holding a lot more cash than we’ve held historically because interest rates don’t work as a hedge and diversifying in other assets makes some sense. So, holding some portion of what you hold in cash and things like crypto seems to make some sense to me.
- As CryptoPotato reported in January, BlackRock filed two Prospectus documents with the United States Securities and Exchange Commission (SEC).
- These were on behalf of BlackRock Funds V and BlackRock Global Allocation Fund Inc.
- In both documents, the text reads that the company may engage in trading cash-settled Bitcoin futures contracts.
Certain Funds may engage in futures contracts based on bitcoin. Bitcoin is a digital asset whose ownership and behavior are determined by participants in an online, peer-to-peer network that connects computers that run publicly accessible or “open source.” […] The only bitcoin futures in which the Funds may invest are cash-settled bitcoin futures traded on commodity exchanges registered with the CFTC.”
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