Billionaire investors Steven Cohen and Ray Dalio have joined the cryptocurrency mania, putting money to work and declaring this week at a conference that bitcoin and other digital currencies are an attractive way to diversify their holdings.
“I have more crypto than gold,” said Dalio, the founder of the world’s largest hedge fund, Bridgewater Associates, to delegates at the SALT conference in New York on Wednesday.
Cohen, who owns Point72 Asset Management, stated earlier this week at the conference that he expects to take advantage of the potential given by digital currencies.
SkyBridge, the alternative investment firm whose founder, Anthony Scaramucci, is organising the SALT conference, has a 12% stake in bitcoin, according to Ray Nolte, the firm’s co-chief investment officer, who spoke at the event.
Despite the fact that investing firms are attempting to build cryptocurrency funds that feel and look like stock and bond funds, they are notorious for being unpredictable and possibly unsafe. Bitcoin, for example, was worth over $48,000 on Wednesday, after falling below $30,000 in July. In April it topped $60,000.
Dalio stated that cryptocurrencies represent diversity and that portfolios should be distributed across a wider range of asset types. “Diversification is good,” he says.
Meanwhile, Cohen has been researching cryptocurrencies for himself and possibly his firm for some time, telling investors in May that he would be “remiss” to ignore the $2 trillion cryptocurrency market.
Cohen revealed this week that he is investing in Radkl, a digital asset investment and proprietary trading firm, and that his firm, Point72, is developing crypto-trading skills.