The world’s largest hedge fund Bridgewater Associates is considering making a bitcoin investment. The initial target is a crypto-specialist external entity.
Bridgewater Associates is the world’s largest hedge fund, with $150 billion in assets under management. Ray Dalio, a well-known cryptocurrency figure, is the company’s founder. He was once keen to speak out about Bitcoin, claiming ownership of the cryptocurrency in May 2021.
Bridgewater Associates employees say the firm has no immediate plans to enter the bitcoin market. Its presence is expected to begin in the first half of 2022 and will be indirect. The investment is expected to be made in an as-yet-undisclosed industry-related entity. A spokesman of the fund verified it in February of this year, saying:
“While we will not comment on our positions, we can say that Bridgewater is still actively exploring cryptocurrencies, but currently has no plans to invest in this sector.”
There are a number of well-known investors in talks with the fund, all of which have expressed an interest in investing in the new venture. They are most likely hoping to benefit from Bridgewater Associates’ reputation in order to diversify their investment portfolios.
Bridgewater’s headquarters are in Connecticut, and the company was founded in 1975. Ray Dalio, the company’s founder, is a Harvard Business School alumnus. In his Manhattan apartment, he took his first steps with the company. The company flourished quickly and became a global success story.
The firm is interested in the bitcoin market because of its ongoing growth. It does not preclude allocating some funds to digital assets directly in the long run. This action, however, is preceded by a series of exceedingly detailed analyses. According to those who have gathered around the fund, the firm is doing extensive study on liquidity and service providers. Bridgewater Associates’ interest in cryptocurrencies should come as no surprise, as Dalio himself stated in one of his articles.
Such information is another evidence of trustworthiness in the bitcoin market. The fact that a prominent hedge fund sees the potential of digital assets like Bitcoin reinforces the crypto foundation. It’s also allowing investors with large portfolios to participate.