Bridgewater Associates, the world’s largest hedge fund founded by billionaire Ray Dalio, will make its first investment in a cryptocurrency fund.
Sources tell CoinDesk that the company is planning to support an external vehicle. However, for now, it does not intend to invest directly in crypto assets.
Either way, this is a sign that the world’s largest hedge fund, with over $150 billion in assets under management (AUM), is seeing potential in the crypto market.
It is worth noting that its founder, Ray Dalio, was skeptical about digital assets. However, in 2021, he recognized the potential of cryptocurrencies and started to support diversification with BTC (BTC).
In May 2021, after claiming that BTC had proved its worth, Dalio announced a personal investment in the cryptocurrency.
Institutional investment in cryptocurrencies
Also according to the sources, the size of Bridgewater’s investment in the cryptocurrency fund is paltry compared to the total AUM.
Furthermore, the sources said that other prominent cryptocurrency investors are in talks to invest in the fund.
Regarding a possible timeline for Bridgewater Associates’ entry into the crypto world, the sources highlighted that the debut should take place in the coming months:
“Bridgewater is on a plan for the first half of this year,” said one of the people. “They are planning to have a small portion of their fund deployed directly into digital assets.”
Another source familiar with the matter said the company is “looking to get involved” with digital assets. “They are doing some serious due diligence: liquidity, service providers and whatnot,” the source said.
It is noteworthy that in February, when contacted by CoinDesk, Bridgewater had said that it did not plan to invest in digital currencies:
“While we do not comment on our positions, we can say that Bridgewater continues to actively research crypto. But it currently does not plan to invest in crypto,” a representative said via email.