BlackRock investment chief explains bitcoin purchase

Rieder says he owns a small amount of bitcoin, citing its volatility and upside.

BlackRock asset-management chief Rick Rieder, in a CNBC interview, described bitcoin as an alternative currency whose value depends on its adoption.

«Part of why I own a small piece of #bitcoin is I do think there are more people who are going to enter that fray over time … I like assets that are volatile that have upside convexity. I could see bitcoin go up significantly but I think it’s volatile,» @RickRieder #btc #crypto pic.twitter.com/nNxnhznrWe

— Squawk Box (@SquawkCNBC) September 9, 2021

“I own a little bitcoin because I think the number of people in the crypto industry will grow over time. I like volatile assets,” said Rieder.

In his view, digital gold cannot replace traditional assets in an investment portfolio, such as stocks and bonds.

“I consider it largely a speculative part of the portfolio, and that’s its value,” added Rieder.

In August, BlackRock revealed holdings totaling $382.96 million in Nasdaq-listed mining firms Marathon Digital Holdings and Riot Blockchain.

In May, BlackRock chief Larry Fink stated that cryptocurrencies have potential over the long term.

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