Bridgewater Associates wants to increase its holdings of digital assets. Cryptocurrencies will not be directly invested by the $150 billion hedge fund. According to billionaire Ray Dalio, investors should invest a small portion of their portfolio in Bitcoin.
Bridgewater Associates wants to increase its holdings of digital assets
The world’s largest hedge fund is preparing to invest in an “external vehicle”, rather than directly in the cryptocurrency markets. Ray Dalio’s company, which manages $150 billion in assets under management (AUM), wants a slice of the digital asset pie. Last year, the man admitted to having Bitcoin (BTC), so the action was not anticipated. Bitcoin (BTC-USD) broke through the $42,000 mark as news broke that Ray Dalio’s Bridgewater Associates hedge fund is gearing up to invest in the world’s largest cryptocurrency.
On Tuesday, the price of bitcoin jumped 3.3% to $42,571. Ethereum (ETH-USD) rose 16.5% in one week to $3,020 after co-founder Vitalik Buterin was featured on the cover of Time magazine.
Several financial institutions, including hedge funds, are adding bitcoin to their investment portfolios. Dalio’s film follows in the footsteps of Marshall Wace, a London-based hedge fund rumored to launch a crypto fund in July 2021.
According to CoinDesk, Bridgewater Associates intends to invest in an external vehicle linked to the price of bitcoin. Dalio revealed in May 2021 that he has a personal stake in bitcoin, but this is the first indication that the world’s largest hedge fund is considering investing in bitcoin futures.
“While we do not comment on our holdings, we can say that Bridgewater continues to explore crypto extensively but does not currently plan to invest in crypto,” the company told CoinDesk in February.
Institutions and governments have recently shown signs of changing their stance on Bitcoin. The U.S. Securities and Exchange Commission (SEC) has extended the deadline for deciding whether to sanction two bitcoin spot exchange-traded funds (ETFs). The Securities and Exchange Commission (SEC) has been a vocal opponent of Bitcoin ETFs in the past.
“The Commission believes it is appropriate to designate a longer period to take action on the proposed rule change so that it has sufficient time to review the proposed rule change and any comments received,” the commission said. in a statement about the One River ETF and WisdomTree.
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