World’s biggest hedge fund reportedly investing in crypto

  • Sources familiar with the matter said Bridgewater Associates could seek exposure 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 personal capacity.

Bridgewater Associates, one of the world’s biggest hedge funds is now setting its eyes on crypto. As per sources, the hedge fund is planning to back an external vehicle, a crypto fund, instead of gaining direct exposure.

Ray Dalio, the billionaire investor and founder at Bridgewater Associates has been an open supporter of Bitcoin and crypto. In the past, Dalio even acknowledged that investors should hold a very little portion of their portfolio in crypto. Earlier this year, Dalio said that Bitcoin (BTC) was already on the company’s radar.

Ray Dalio said that he himself holds Bitcoin and Ethereum in his personal portfolio. Interestingly, he also sees crypto as a hedge to the rising inflation in current times. Bridgewater Associates is currently managing more than $150 billion in assets under management (AUM). Any exposure to crypto funds coming from the crypto fund will put a huge weight behind the crypto industry.

However, one of the sources told CoinDesk that the company is just dipping its toes in crypto funds. The source said that the size of Bridgewater’s investment is very small in comparison to its AUM. As per sources, the hedge fund will likely make an entry by mid-2022. In an email to CoinDesk last month, a Bridgewater representative said:

While we won’t comment on our positions, we can say Bridgewater continues to actively research crypto but is not currently planning on investing in crypto.

Hedge funds join the crypto bandwagon

Hedge funds across the world have been showing interest in crypto. London-based hedge fund Marshall Wace was reportedly making a similar move.

Some sources also provided a rough timeline for Bridgewater’s crypto debut. They said: “Bridgewater is in a first-half plan this year. They’re planning on having a small slug of their fund deployed directly into digital assets.”

Another source familiar with the hedge fund’s crypto trading plan said: “Bridgewater is looking to get involved. They are doing serious diligence: liquidity, service providers, and whatnot.”

On record, Ray Dalio has said that he’s a firm believer in blockchain technology and even believes it to be revolutionary. However, he believes that the government can see Bitcoin as a threat and might outlaw it. Earlier this year, Dalio described Bitcoin as “one hell of an invention”. He said:

To have invented a new type of money via a system that is programmed into a computer and that has worked for around 10 years and is rapidly gaining popularity as both a type of money and a storehold of wealth is an amazing accomplishment.

He also believes that Bitcoin can serve as an alternative to Gold in the long term. He sees a “rising need” for such assets that are limited in quantity due to the high levels of debts undertaken by governments and the quantitative easing done.