According to Rick Rieder, CIO of investment firm BlackRock, the company is now looking into bitcoin as investors look to invest in alternative assets.
During an interview on CNBC's Squawk Box program, Rick Rieder said that the investment giant is "dabbling" with bitcoin, though he did not disclose details. He noted that investors are increasingly interested in alternative assets for storing wealth:
"I think cryptocurrency technology has evolved noticeably, as has industry regulation. A lot of people now think bitcoin should be part of an investment portfolio, and that sentiment is driving the price up."
So far, Reeder said, the company does not make recommendations about investing in bitcoin, but if a person has significant savings in fiat currency, it would be "prudent" to invest some money in BTC. That said, Reeder isn't sure that investing 1% of one's money in bitcoin is worth it to everyone.
"I'm not sure what percentage of funds should be invested in cryptocurrencies - it depends on your investment portfolio," the BlackRock IT director stressed.
Recall that in late January, BlackRock CEO Larry Fink called bitcoin an under-tested asset for large-scale investments.