World’s largest hedge fund reportedly investing in a crypto

World’s largest hedge fund reportedly investing in a crypto

  • Sources conversant in the matter stated Bridgewater Associates might search publicity to crypto funds as early as mid-2022.
  • Bridgewater founder Ray Dalio has been an ardent advocate of Bitcoin and holds BTC and ETH in his private capability.

Bridgewater Associates, one of many world’s largest hedge funds is now setting its eyes on crypto. As per sources, the hedge fund is planning to again an exterior automobile, a crypto fund, as an alternative of gaining direct publicity.

Ray Dalio, the billionaire investor and founder at Bridgewater Associates has been an open supporter of Bitcoin and crypto. Previously, Dalio even acknowledged that buyers ought to maintain a little or no portion of their portfolio in crypto. Earlier this yr, Dalio stated that Bitcoin (BTC) was already on the corporate’s radar.

Ray Dalio stated that he himself holds Bitcoin and Ethereum in his private portfolio. Curiously, he additionally sees crypto as a hedge to the rising inflation in present instances. Bridgewater Associates is at the moment managing greater than $150 billion in belongings below administration (AUM). Any publicity to crypto funds coming from the crypto fund will put an enormous weight behind the crypto business.

Nevertheless, one of many sources informed CoinDesk that the corporate is simply dipping its toes in crypto funds. The supply stated that the dimensions of Bridgewater’s funding could be very small compared to its AUM. As per sources, the hedge fund will seemingly make an entry by mid-2022. In an electronic mail to CoinDesk final month, a Bridgewater consultant said:

Whereas we gained’t touch upon our positions, we will say Bridgewater continues to actively analysis crypto however will not be at the moment planning on investing in crypto.

Hedge funds be part of the crypto bandwagon

Hedge funds internationally have been exhibiting curiosity in crypto. London-based hedge fund Marshall Wace was reportedly making an identical transfer.

Some sources additionally offered a tough timeline for Bridgewater’s crypto debut. They stated: “Bridgewater is in a first-half plan this yr. They’re planning on having a small slug of their fund deployed instantly into digital belongings.”

One other supply conversant in the hedge fund’s crypto buying and selling plan stated: “Bridgewater is seeking to get entangled. They’re doing severe diligence: liquidity, service suppliers, and whatnot.”

On file, Ray Dalio has stated that he’s a agency believer in blockchain expertise and even believes it to be revolutionary. Nevertheless, he believes that the federal government can see Bitcoin as a menace and may outlaw it. Earlier this yr, Dalio described Bitcoin as “one hell of an invention”. He stated:

To have invented a brand new kind of cash through a system that’s programmed into a pc and that has labored for round 10 years and is quickly gaining recognition as each a sort of cash and a storehold of wealth is a tremendous accomplishment.

He additionally believes that Bitcoin can function an alternative choice to Gold in the long run. He sees a “rising want” for such belongings which might be restricted in amount because of the excessive ranges of money owed undertaken by governments and the quantitative easing completed.

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