A top executive at investment management firm BlackRock says he owns Bitcoin (BTC) despite the flagship cryptocurrency’s volatility.
Rick Rieder, the company’s chief investment officer of global fixed income, says he does not see Bitcoin as a great hedge in a new interview with CNBC’s Squawk Box.
“People describe it as a hedge or an alternative. I’m not sure it’s a really great hedge… when an asset moves 10% to 15% a day. Really hard to hedge big, organic asset pools with that as a hedge.”
While he does not consider Bitcoin as a core asset like stocks or bonds, Rieder says that he sees value in holding BTC as a speculative tool.
“Part of why I own a small piece of Bitcoin is I do think there are more people who are going to enter [the] 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.”
In May, Rieder said that Bitcoin has not yet reached maturity and will be part of the investment arena for years to come.