Wednesday, October 5, 2022

Bridgewater Associates Make Plans to Join the Crypto Investment Train

The world’s largest hedge fund, Bridgewater Associates has signaled its readiness to extend its leaning into the digital assets space by backing a crypto fund.

The hedge fund company which currently has $150 billion in Assets Under Management (AUM) has however indicated that it currently does not have plans to invest directly in cryptocurrency but rather what it described as an ‘external vehicle.’

The company has been conducting vigorous research as regards digital assets for quite some time. Presently, the hedge fund has however indicated that what it plans to put into this crypto-related investment is a meager sum when compared to its AUM value. 

This announcement is however quite shocking as Ray Dalio, the founder of Bridgewater Associates is one man who was bold in expressing the skepticism he initially had about cryptocurrency when he tagged Bitcoin (BTC) as a bubble in 2017.

The billionaire businessman went ahead in 2020 to cite certain concerns he had about Bitcoin, and why he believes that the cryptocurrency would never become elevated to the status of an effective currency.

Last year however saw a detour when Dalio stated that Bitcoin has proven itself to be a digital asset with proven value, calling Bitcoin the gold of the coming generation. He, therefore, advised investors to allocate about 1% of their investment portfolio to BTC.

In an earlier report released by Bridgewater Associates, the company asserted that it was actively studying the digital space but it has no defined figures planned out for outright cryptocurrency investment.

More Institutions Embraces Cryptocurrency

Just as Dalio opined about the crypto market being now vast enough for institutional investors to take sizable positions, the crypto space has witnessed a deluge of corporate investors of all shapes and sizes.

One of such is Marshall Wace, a London-based investment firm that recently raised funds for investment in digital assets and blockchain technology.

Steve Cohen’s owned Point72 Ventures is also another of such firms that have refused to stay on the sidelines as it is reported to have invested funds in the crypto sector, with additional plans to invest in tokens.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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