Blackrockâ€™s Chief Investment Officer, Rick Rieder, said cryptocurrency, including bitcoin, â€œis here to stay.â€ In addition, he said bitcoin is a durable mechanism that could replace gold.
Blackrock on Bitcoin and Gold
Rick Rieder, Blackrockâ€™s Chief Investment Officer (CIO) of Global Fixed Income, talked about bitcoin replacing gold in an interview with CNBCâ€™s Squawk Box on Friday.
Blackrock is the worldâ€™s largest asset manager, with more than $7.4 trillion in assets under management as of September. Rieder is also Blackrockâ€™s Head of the Global Allocation Investment Team in the Multi-Asset Strategies Group.
Responding to a question about the price of bitcoin and gold and whether he is a bitcoin bull, Rieder said:
Rieder elaborated: â€œI think it is durable, and youâ€™ve seen the central banks that have talked about digital currencies. I think digital currency and the receptivity â€” particularly millennialsâ€™ receptivity â€” of technology and cryptocurrency is real. Digital payment systems are real, so I think bitcoin is here to stay.â€
In terms of whether he is a bitcoin bull, Rieder said: â€œI donâ€™t do a lot of it, or much any of it, in my portfolios, my corporate portfolios, my business portfolios.â€ While stating that â€œItâ€™s hard to say whether itâ€™s [bitcoinâ€™s] worth the price it is trading at today,â€ he affirmed:
Reidâ€™s comments were very welcome in the crypto community. Former Goldman Sachs hedge fund manager Raoul Pal tweeted: â€œThis is huge news. This is the largest asset management firm on earth. 2021 is setting up to be a year of severe supply shortages vs. demand in bitcoin, and upside price dislocations.â€
Thomas Lee, Head of Research at Fundstrat Global Advisors, commented that bitcoin is â€œkilling it this year â€” itâ€™s just crushing all other hedges and asset classes this year, but in 2021 I think bitcoin could be the year of the fireworks â€¦ the best is probably yet to come.â€
The Blackrock chief investment officerâ€™s comments followed a string of other hedge fund managers saying that they own bitcoin, including Paul Tudor Jones, Bill Miller, and Stan Druckenmiller.
What do you think about the Blackrock executiveâ€™s view on bitcoin? Let us know in the comments section below.
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