Rick Reeder, chief investment officer at BlackRock Financial Management, suggested that the company has already invested part of its portfolio in cryptocurrencies.

In an interview with Squawk Box on CNBC on Wednesday, Reeder said that BlackRock, which owns more than $ 8.6 trillion in assets, “is starting to double down a bit” in cryptocurrency investments. The investment chief called the volatility of cryptocurrencies such as Bitcoin (BTC) “unusual”, but admitted that many investors were looking for “places to grow, assuming that inflation rises as debt rises.”

“It seems that storing some of what you keep as cash in things like crypto makes little sense to me,” Ryder said, “but I’m not going to accept a specific allocation or target retention. “I think that technology has evolved and that the regulations have changed to the point where many people think they should be part of a portfolio.”

Reader did not elaborate on the proportion of BlackRock’s assets under management that may be in crypto, but his comments followed after a multimillion-dollar asset manager mentioned Bitcoin in prospectuses filed with the US Securities and Exchange Commission. The deposits show that BlackRock can use bitcoin derivatives and other assets as part of the investment scheme.

In recent months, CEOs of asset management companies have spoken positively about cryptocurrencies. Reader previously stated that Bitcoin could largely replace gold, and in December 2020, CEO Larry Fink said that Bitcoin had caught his attention and could become a global market.

The CIO’s latest remarks came after Tesla bought $ 1.5 billion bitcoins earlier this month, prompting many companies to question whether they are considering investing in cryptocurrencies. Both Microsoft and General Motors have said they have no short-term plans to include bitcoin in the budgets, while the Amsterdam-based payment processor Adyen does not rule out that possibility.