BlackRock, the world's largest asset manager, reportedly thinks Bitcoin will experience a significant increase in its portfolio in the coming years.
“Time will tell whether Bitcoin will become a big part of the asset allocation framework,” said Rick Rieder, who oversees a wide range of portfolios that manage money for public pensions and retirement funds. He added, “I think over time people will become more and more comfortable with this.”
The company recently launched a spot Bitcoin fund, which currently holds more than $3 billion in cryptocurrencies. As of today, IBIT, BlackRock's BTC product, is the world's largest Bitcoin Spot ETF manager after GBTC, with 3,435 BTC assets. Next comes Fidelity's FBTC product, which has 2,937 BTC.
GBTC, which was previously a trust owned by Grayscale, turned into an ETF after its application to the SEC was accepted with the effect of the court decision, thus becoming the largest BTC ETF. However, daily outflows from the GBTC product continue to keep the BTC price under pressure.
Rieder said he believes the upside potential could be real as more people embrace Bitcoin as an asset.
*This is not investment advice.