Ray Dalio’s Bridgewater Associates Prepares to Invest in a Crypto Fund

Bridgewater Associates, the world’s largest hedge fund, announced Monday plans to back a crypto fund for the first time. The hedge fund founded by billionaire Ray Dalio disclosed that it is preparing to invest in an external cryptocurrency fund. The hedge fund firm justified its move by stating that currently, it does not have any plans to invest directly in cryptocurrencies itself.

According to three sources familiar with the matter, other prominent crypto investors are also in talks to invest in the fund.

A Bridgewater spokesperson revealed that the company currently does not have plans to invest in cryptocurrencies. “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,” the official mentioned.

Another person with close information about the hedge fund’s crypto trading plans said: “Bridgewater is in a first-half plan this year. They plan to have a small slug of their fund deployed directly into digital assets.”

And another source also disclosed: “Bridgewater is looking to get involved. They are doing serious diligence: liquidity, service providers and whatnot.”

The Company Has a Place for Bitcoin

The move clearly indicates that the world’s largest hedge fund, with $150 billion in assets under management (AUM), is listening and taking cryptocurrency seriously as an asset class.

Established in 1975 and headquartered in Connecticut, US, Bridgewater is an American investment management company founded by Harvard Business School graduate Ray Dalio.

In December 2020, Dalio, the founder and chief investment officer of Bridgewater Associates, clarified his view on Bitcoin and disclosed what his company has in store for cryptocurrency.

Dalio confirmed that he owns “a little bit” of Bitcoin and called it a younger generation’s alternative to gold. “Bitcoin is like gold, though gold is the well-established blue-chip alternative to fiat money.” The Billionaire investor said that allocating up to 2% of one’s portfolio to Bitcoin is reasonable. He is confident that Bitcoin, similar to gold, acts as a good hedge against rising prices of goods and services.