One of the world’s largest hedge funds Bridgewater Associatesseems to have set its next target as crypto assets. The hedge fund plans to support an external intermediary, a crypto fund, instead of gaining direct exposure, sources reported.
Ray Dalio, billionaire investor and founder of Bridgewater Associates, Bitcoin (BTC) and was already known to be an open supporter of cryptoassets. Dalio even stated earlier that investors should keep a very small portion of their portfolio in crypto. Earlier this year, Dalio stated that Bitcoin (BTC) is already on the company’s radar.
Dalio has stated that he holds Bitcoin and Ethereum in his personal portfolio, and interestingly, he sees crypto assets as a hedge against rising inflation. Bridgewater Associates currently manages more than $150 billion in assets under management (AUM).
According to a report by CoinDesk, the company only made a small entry into crypto funds. CoinDesk stated that the true size of Bridgewater’s investment is minimal compared to the total capital it manages. According to sources, the company will likely continue to log in until mid-2022. A representative of Bridgewater wrote to CoinDesk last month:
“While we do not comment on our positions, we can say that Bridgewater continues to actively explore crypto but does not currently plan to invest in crypto.”
Hedge Funds Tend to Join Crypto
hedge funds continues to show interest in crypto worldwide. London-based hedge fund Marshall Wace has reportedly made a similar move. Some sources have even provided a rough timeline for Bridgewater’s crypto investment. According to sources, “Bridgewater is on its halftime schedule this year. It plans to distribute a small portion of its funds directly to digital assets.”
Another source familiar with the hedge fund’s crypto trading scheme said, “Bridgewater wants to be involved. They take serious care: liquidity, service providers and more can be seen.”
On the record, Ray Dalio said he firmly believes in blockchain technology and even believes it is revolutionary. However, he believes that the government may view Bitcoin as a threat and ban it. Earlier this year, Dalio described Bitcoin as a “great invention.”
“Inventing a new type of money through a computer-coded and programmed system that has been operating for nearly 10 years and is rapidly gaining popularity as both a type of money and a store of wealth is an incredible feat.”
Dalio, who also believes that Bitcoin can serve as an alternative to Gold in the long run. He thinks there will be an “increasing need” for such assets, which are limited in quantity due to high debts undertaken by governments and quantitative expansion.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.