BlackRock CIO: "Bitcoin Is Here to Stay"

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Fri, 11/20/2020 - 13:59
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Alex Dovbnya
The CIO of the largest asset manager in the world sees Bitcoin replacing gold
BlackRock CIO: "Bitcoin Is Here to Stay"
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Rick Rieder, BlackRock's chief investment officer of fixed income, said that cryptocurrencies are here to stay when asked to weigh in on Bitcoin during the latest episode of CNBC's "Squawk Box":

I think Bitcoin is here to stay. Am I a Bitcoin bull? I don't do a lot of it or any of it in my corporate portfolios or business portfolios.

What is more, he forecasted that Bitcoin could take the place of gold, channeling hedge fund legend Stanley Druckenmiller:

Do I think it is a durable mechanism that, you know, that I think could take the place of gold to a large extent? Yeah, I do, because it’s so much more functional than passing a bar of gold around.

Blockchain, not Bitcoin

BlackRock is the largest asset manager in the world and controls over $7.4 tln.

In Sept. 2018, BlackRock CEO Larry Fink dismissed the idea of launching a cryptocurrency exchange-traded fund (ETF) until the industry becomes more legitimate.

Like J.P. Morgan CEO Jamie Dimon, Fink sees more promise in blockchain technology, predicting that its alternative use cases would eclipse crypto:

The biggest use for blockchain will be in mortgages, mortgage applications, mortgage ownership, anything that's labored with paper.

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JPMorgan CEO Jamie Dimon Says Bitcoin Is Not His Cup of Tea

BlackRock already holds Bitcoin

While Fink is yet to change his stance on Bitcoin, his company already has indirect exposure to the flagship cryptocurrency.

BlackRock Fund Advisors has a 14.79 percent stake in publicly listed business intelligence firm MicroStrategy, which holds 38,250 BTC after making Bitcoin its primary reserve currency earlier this year in a trailblazing move.

MSTR
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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.