BlackRock CIO Says Investing in Bitcoin Makes More Sense Now
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Diversification with the help of digital currencies makes some sense as duration and interest rates do not work as a hedge in the current state of affairs, BlackRock Chief Investment Officer Rick Rieder told CNBC.

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In the interview, Rieder admitted the current volatility on the crypto market is "extraordinary," however, people have been looking for a new store of value since the US government initiated money printing which made BlackRock start "dabbling in it [bitcoin]."

Rieder notes the evolution of cryptocurrencies and the regulation have come to the point where a number of people"find it [cryptocurrency] should be part of the portfolio." The BlackRock CIO says this belief is driving the prices up. However, Rieder declined to say the percentage allocation one should have in bitcoin (EXANTE: Bitcoin) as it depends on "what the rest of your portfolio looks like."

BlackRock Wants to Hire a VP to Drive Demand for its Crypto Products

In January, BlackRock CEO Larry Fink said bitcoin still remains to be an 'untested' asset. Fink emphasized bitcoin needs a broadening of the market if it wants "to be truly successful." In the same month, the world's largest asset manager, with $8.67 trillion in assets under management, filed updated prospectuses for two funds with the US Securities and Exchange Commission (SEC) with inclusion of cash-settled Bitcoin futures.

As of press time, bitcoin is trading at $51,370.

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