A top executive at investment management firm BlackRock says he owns Bitcoin (BTC) despite the flagship cryptocurrency’s volatility.
Rick Rieder, the company’s chief investment officer of global fixed income, says he does not see Bitcoin as a great hedge in a new interview with CNBC’s Squawk Box.
“People describe it as a hedge or an alternative. I’m not sure it’s a really great hedge… when an asset moves 10% to 15% a day. Really hard to hedge big, organic asset pools with that as a hedge.”
While he does not consider Bitcoin as a core asset like stocks or bonds, Rieder says that he sees value in holding BTC 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 [the] fray over time…
I like assets that are volatile, that have upside convexity. I could see Bitcoin go up significantly, but I think it’s volatile.”
In May, Rieder said that Bitcoin has not yet reached maturity and will be part of the investment arena for years to come.
During a Squawk Box interview in November, the BlackRock executive also that BTC will overtake gold as the primary store of value.
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/camilkuo
The post BlackRock CIO Says He Owns Bitcoin Even Though It’s ‘Not a Great Hedge’ – Here’s Why appeared first on The Daily Hodl.
