The chief investment officer of the world’s largest asset manager, Blackrock, says he could see bitcoin going up significantly. “I like assets that are volatile that have upside convexity,” he said.

Rick Rieder, Blackrock’s chief investment officer (CIO) of Global Fixed Income, was asked Friday in an interview with CNBC about his view on bitcoin now that the cryptocurrency is legal tender in a country. Blackrock is the world’s largest asset manager, with about $9.5 trillion in assets under management (AUM) at the end of the second quarter. Rieder is also the firm’s head of the Fundamental Fixed Income business and head of the Global Allocation Investment Team. He is responsible for roughly $2.4 trillion in assets. Rieder began by commenting on the popular opinion that cryptocurrency is either “a hedge or an alternative [currency].” Regarding cryptocurrency as a hedge, he said, “I’m not sure it’s a really great hedge,” citing its correlation to equities and risk assets. Noting that its price can move 15% a day, he reiterated, “I’m not sure it’s a great hedge.” Regarding cryptocurrency as “an alternative currency,” he opined:

Part of why I own a small piece of bitcoin is I do think there are more people who are going to enter that fray over time … I like assets that are volatile that have upside convexity. I could see bitcoin go up significantly.

Rieder noted that Blackrock has a “very moderate” amount of cryptocurrency in its portfolio. Emphasized that bitcoin is volatile, he said he does not see it as a core asset like bonds or stocks. Nonetheless, he sees value in having a small amount as a speculative tool in a portfolio. In November last year, he said that cryptocurrency was here to stay and could even replace gold to a large extent. Do you agree with Blackrock’s CIO? Let us know in the comments section below.