Midrash for Chullin 70:38
לישמעינן דם שחיטה וכ"ש דם המת
Come and hear: [It was taught:] R'Simeon says: The blood from a wound [in an animal] does not render foodstuffs susceptible to uncleanness.
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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