On Thursday Rick Rieder, CIO of BlackRock, said on CNBC’s Squawk Box that he owns Bitcoin and that he believes its price could go up ‘significantly’ in the future.

A top executive at the largest asset manager in the world, with $9.49 trillion under management, Rieder spoke out about Bitcoin. He described it as an alternative currency, whose price movements will likely be determined by its increased adoption.

He stated that part of the reason why I have a small amount of Bitcoin is because I believe there are more people who will enter that market over time. I like assets with upside convexity and volatility. I could see Bitcoin rising significantly, just like it has.

Rieder stated that Bitcoin is a good speculative tool.
In August, it was reported that BlackRock allocated over $382 million to shares of Bitcoin mining giants Marathon Digital Holdings and Riot Blockchain.

A June 30 SEC filing shows that Blackrock purchased significant shares in Bitcoin mining companies. It now has certain funds.

BlackRock’s continued interest in Bitcoin speaks to the influx of traditionally conservative large financial institutions leveling up their exposure to Bitcoin through traditional equity, and other traditional investment vehicles such as Grayscale Bitcoin Trust.

According to Forbes, Blackrock filed a January filing with the SEC in order to include cash-settled Bitcoin options for the BlackRock Global Allocation Fund and the BlackRock Strategic Income Opportunities portfolio.

BlackRock’s investment into Bitcoin mining is notable because American Bitcoin mining companies will likely profit from China’s mining ban, and the subsequent global reallocation and drop in hashing power.