In an interview with CNBC squawkbox, BlackRock’s chief investment officer, Rick Rieder, admitted that the company had been involved in bitcoin. BlackRock is the world’s largest asset management company, managing about $8 trillion in assets. The company is publicly listed with a market value of about $110 billion. BlackRock’s chief investment officer gave a cautious response to bitcoin, and host Joe Kernen first asked Rick Reid’s position on the cryptocurrency, which has the largest market value. Rick Reid’s reaction was cautious because he tried to be neutral. “I think cryptocurrency has captured a lot of people’s imagination. Today, its volatility is extraordinary. But listen, people are looking for a store of value. People are looking for “real estate” that can appreciate. Assuming inflation continues to rise, that’s your house. “ Even so, Rick Reid admits that BlackRock has begun to dabble in bitcoin. However, he declined to disclose the amount. Instead, he referred to a series of changing factors that led to the group’s change in policy against the special currency. This includes his own mastery of technology and an increasingly favourable regulatory environment. “My perception of technology has changed, and so have regulations, that many people think it should be part of the portfolio. So that’s why bitcoin prices are going up. “ When asked about future developments, Rick Reid hinted that tough macroeconomic conditions had prompted BlackRock to switch to bitcoin. The implication here is that further deterioration will activate greater buying pressure in the bitcoin market. “We have a lot more cash now than in history because duration doesn’t work and interest rates don’t hedge. So it makes sense to diversify into other assets. ” BlackRock’s interest in cryptocurrencies is growing. Last month, it was reported that bitcoin derivatives from commodity exchanges would become eligible investments for other BlackRock funds and BlackRock’s global allocation funds. The move is in line with BlackRock’s increasingly aggressive bitcoin rhetoric. Larry Fink, the company’s chief executive, talked about the possibility of bitcoin going global. He also said having a digital currency makes the dollar less important. As Rick Reid points out, deteriorating macroeconomic conditions, such as negative interest rates, extreme monetary policy and soaring public debt, have made institutions seek to diversify their portfolios, such as cryptocurrencies. In recent weeks, well-known institutional investors, including Tesla and bny Mellon, have stepped into bitcoin. At the same time, don’t forget the hints of interest from other big institutional investors such as JPMorgan Chase. The momentum of institutional buyers will only encourage more companies to do the same, or to share investment risk in these uncertain times.