World's Largest Asset Manager: "We've Started To Dabble In Bitcoin"

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by Tyler Durden
Wednesday, Feb 17, 2021 - 01:00 PM

Bitcoin's recent surge, above $51,000 this morning, has been accompanied by a growing acceptance and adoption by many across the institutional space - from hedge funds to 'the oldest bank in America' and from corporate treasuries to payment systems providers.

And now, Rick Rieder, CIO of BlackRock, says the biggest asset manager in the world has "started to dabble" in bitcoin:

"...people are looking for store-houses of value, people are looking for assets that could appreciate under the assumption that inflation moves higher as debts are building... and we have started to dabble in it."

While unwilling to put a figure on a suggested allocation for investors, Rieder added that:

"...the technology and the regulation has evolved to the point where a number of people find that it should be part of the portfolio, and that's what's driving the price up."

Watch the full clip here:


Who next? Bridgewater?

Additional support for bitcoin came from a report by Gartner on Corporate CFO plans to follow MicroStrategy and Tesla and add crypto to their reserves.

Bloomberg desperately tried to pour cold water on the crypto space by pointing out that most financial executives, including chief financial officers, are not planning to invest in Bitcoin as a corporate asset this year.

But they missed the much bigger picture in their effort to downplay the decentralized currency's success -

While 5% of companies that confirmed they intend to invest in Bitcoin as a corporate asset this year, that is more than enough to provide power for the next leg higher in the crypto currency and the fact that over 70% of respondents stated that one of the top things they want to know is what others are doing with Bitcoin. In other words, as interest builds, demand will build on itself.

The technology sector showed the most attraction towards Bitcoin with 50% of respondents from this industry anticipating holding the cryptocurrency in the future, with no difference based on the organization’s size.

As CoinTelegraph notes, the technology sector alone could have at least $640 billion to invest - though most companies so far have allocated only a small percentage to Bitcoin.

Investment firm ARK Invest suggested earlier this month that if “all S&P 500 companies were to allocate 1% of their cash” to BTC, the digital asset’s price would increase by roughly $40,000, driving the price to just shy of $90,000.

Should the corporate investments rise to 10% of cash reserves, ARK claims Bitcoin will increase by $400,000.