Bridgewater Associates wants to increase its holdings of digital assets. Cryptocurrencies will not be directly invested in by the $150 billion hedge fund. According to billionaire Ray Dalio, investors should put a small portion of their portfolios into 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 cryptocurrency markets. Ray Dalio’s firm, which manages $150 billion in assets under management (AUM), wants a piece of the digital asset pie. Last year, the man admitted to having Bitcoin (BTC), therefore the action was not anticipated. Bitcoin (BTC-USD) broke through the $42,000 barrier as news broke that Ray Dalio’s Bridgewater Associates hedge fund is preparing to invest in the world’s largest cryptocurrency.
On Tuesday, the price of bitcoin jumped by 3.3 percent to $42,571. Ethereum (ETH-USD) rose 16.5 percent in a week to $3,020 after co-founder Vitalik Buterin was featured on the front 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 that is rumored to be launching a crypto fund in July 2021.
According to CoinDesk, Bridgewater Associates intends to invest in an external vehicle related to the price of bitcoin. Dalio disclosed in May 2021 that he has a personal bitcoin stake, but this is the first indication that the world’s largest hedge fund is considering investing in bitcoin futures.
“While we won’t comment on our holdings, we can state Bridgewater continues to extensively explore crypto but is not currently planning on investing in crypto,” the company told CoinDesk in February.
Institutions and governments have recently shown hints of shifting their positions on Bitcoin. The United States Securities and Exchange Commission (SEC) has extended the deadline for considering whether or not 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 finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and any comments received,” the commission said in a statement on both the One River and WisdomTree ETFs.
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