Midrash for Chullin 70:32
אף שחיטה נמי מכשרת
Then what is the law with regard to the blood of a slaughtered animal?
Sifrei Devarim
"On the earth shall you spill it as water": Just as it is permitted to derive benefit from water, it is permitted to derive benefit from blood — Just as water renders seed susceptible (of incurring tumah), so, blood. Just as water need not be covered, so blood (that of a disqualified offering which has been slaughtered) need not be covered.
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