Again, it’s worth acknowledging that Tesla’s Bitcoin purchase announcement was a very significant event for the cryptocurrency market. It has literally unlocked more interest and caused many other prominent institutions to start considering holding Bitcoin on their balance sheets. On Wednesday, Rick Rieder, the chief investment officer at BlackRock, confirmed that they have started to dabble in Bitcoin.
This is another important piece of news, just like that of Tesla. For the record, BlackRock is the world’s largest digital asset manager. The institution reportedly manages more than US$7 trillion worth of assets.
BlackRock is Making Moves to Bitcoin
The BlackRock investment officer made this known while discussing with CNBC’s SQUAWK BOX. According to Rieder, people are increasingly looking for storehouses of value and places that could appreciate their holdings while inflation hits. This is typically one of the reasons Microstrategy, a publicly-traded business intelligence company, got into Bitcoin in the first place.
On that note, Rieder admitted that the world’s largest asset manager has begun dabbling into the leading cryptocurrency. However, he couldn’t mention the exact percentage that BlackRock intends to allocate to Bitcoin. Many people expect BlackRock to allocate at least one percent of its reserve to the cryptocurrency, which runs in tens of billions of dollars.
Earlier this year, the asset manager filed with the United States Securities and Exchange Commission (SEC), disclosing their intent to allow their funds to engage in futures contracts based on Bitcoin.
Industry Experts Reacts to BlackRock News
The news today is another big development for the Bitcoin market, to be precise. One percent of BlackRock’s reserve going to Bitcoin will catapult the market value to a great level, and this has got many crypto experts talking, including Anthony Pompliano and Kraken’s Dan Held.
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