cryptoglobe.com
The chief investment officer (CIO) of $9 trillion asset manager BlackRock, Rick Rieder, has revealed he believes bitcoin will be a “part of the investment arena” for years to come, even though he argued BTC has “not reached maturity yet” as an asset.
Speaking during CNBC’s “Squawk Box,” Rieder weighed in on Elon Musk’s recent announcement revealing Tesla would no longer accept bitcoin payments over environmental concerns, but would hold onto the BTC it had bought earlier this year. He noted bitcoin is an “interesting asset” that still doesn’t have a clear role in portfolios.
Some of the hurdles the flagship cryptocurrency has to overcome, he says, include its volatility and carbon footprint. BlackRock itself has been focusing on environmental, social, and governance (ESG) investing and believes bitcoin is a “durable” asset that needs to overcome these challenges.
"Bitcoin is an interesting asset. It is one that has not reached maturity yet," BlackRock's @RickRieder #btc #bitcoin. "I think it's durable. I think it will be part of the investment arena for years to come … but these challenges are real. They will be overcome over time." pic.twitter.com/EentcYawQN
— Squawk Box (@SquawkCNBC) May 13, 2021
It’s worth noting that back in February, BlackRock “started to dabble” in bitcoin, when the price of the flagship cryptocurrency was close to $51,000. Reider at the time revealed he believes the cryptocurrency “gotten “the imagination of a lot of people” even as its volatility is currently “extraordinary.”
The CEO of BlackRock, Larry Fink, said during an interview that crypto could “become a great asset class.” At the time Fink noted he was “still fascinated” about cryptocurrencies and had been encouraged by the amount of people focusing on the market.
BlackRock is the world’s largest asset manager, with over $9 trillion in assets under management (AUM). It has created a “very small position” in crypto, Rieder revealed.