Midrash for Chullin 70:46
לשמעינן דם שחיטה וכ"ש דם מגפתו
Then the same should be the case with the blood of a slaughtered animal, for it is written: Thou shalt pour it out upon the earth as water?<span class="x" onmousemove="('comment',' Deut. XII, 16. This verse suggests that blood is accounted as water.');"><sup>17</sup></span>
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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