The world’s largest hedge fund is about to back its first cryptocurrency fund, CoinDesk reported on Tuesday, citing two sources close to the matter.
What Happened: Bridgewater Associates, the investment firm with $150 billion in assets under management (AUM), plans to back an external vehicle with exposure to cryptocurrency, according to the report.
The sources were quoted by CoinDesk as saying that the fund had no plans to invest directly in such assets and the size of Bridgewater’s investment was minuscule compared with its total AUM.
Other prominent cryptocurrency investors are also said to be in talks to invest in the fund, as per the report.
Why It Matters: Ray Dalio, the hedge fund’s billionaire founder, clarified his stance on Bitcoin (CRYPTO: BTC) last year, calling the leading digital asset “one hell of an invention” early last year.
Later in 2021, the billionaire investor also disclosed he had made a personal investment in both Bitcoin and Ethereum (CRYPTO: ETH), without revealing exact amounts.
“The one thing I would say to investors is don't judge anything in your returns or your assets in nominal terms, in terms of how many dollars you have. View it in terms of inflation-adjusted dollars," he said at the time.
Price Action: At press time, Bitcoin was trading at $41,140, down 0.59% in the last 24 hours. Ethereum was trading at $2,900, up 1.25% over the same period.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!