Bitcoin has gained the attention of major financial firms around the world in the last few months. Rick Rieder, chief investment officer (CIO) at BlackRock said that many people believe that Bitcoin and other cryptocurrency assets should be a part of their investment portfolio.
During an interview with CNBC, Rieder said that Bitcoin investment makes a lot of sense these days. He further added that the firm has started to “dabble” in the crypto market. The CIO of the world’s largest asset manager believes that huge demand from institutions is driving the price of BTC.
BlackRock currently has more than $8 trillion in assets under management. Larry Fink, CEO of BlackRock said in December that Bitcoin has the potential to evolve into a global market asset. The firm recently advertised a position for a cryptocurrency specialist with experience in the valuation of crypto assets.
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“Some people are holding Bitcoin as a store of value and diversifying their portfolios. Institutions are holding a lot of cash, compared to what they were holding before pandemic because of lower interest rate environment, so diversifying investment in Bitcoin and other cryptocurrency assets makes a lot of sense,” Rieder added.
Surge in Bitcoin
The world’s largest cryptocurrency jumped above $52,200 today and registered another all-time high. The price of Bitcoin is up more than 16% in the last 7 days as the total market cap of BTC jumped above $970 billion. Bitcoin’s institutional accumulation has accelerated in the last few weeks after Tesla’s $1.5 billion Bitcoin investment announcement. Mastercard and other firms also revealed their plans for digital assets. Despite the rising institutional demand, Microsoft said no to immediate Bitcoin investment plans. During an interview with CNN, Microsoft president Brad Smith said that the company has no plans to invest in BTC.
The total market cap of digital assets touched $1.6 trillion today after the recent jump in BTC and ETH. The crypto market is up more than 100% since the start of 2021.