Bridgewater Associates is getting ready to invest in its first cryptocurrency fund. Two people familiar with the matter informed CoinDesk that the largest global hedge fund is considering backing an external vehicle. According to one of the sources, it currently has no plans to invest directly in crypto assets. Major cryptocurrencies gained massively after the news broke out. Bitcoin (BTC), the largest cryptocurrency, gained as much as 4.25% abd traded at $42,909.99, at the time of writing. On the other hand, Ethereum (ETH), the second-largest cryptocurrency, was up by 3.34% and traded at $3,007.57.
Apart from founder Ray Dalio’s disclosure in May 2021 of a personal stake in bitcoin, it’s the best indication to date that the largest global hedge fund, having $150 billion worth of assets under management (AUM), has been taking crypto carefully as an asset category (BTC).
Bridgewater’s investment, however, is insignificant in comparison to the firm’s overall AUM, according to one of the sources, and other big crypto financiers are in discussions to participate in the fund.When contacted by CoinDesk last month, a Bridgewater spokeswoman stated that the firm does not presently have intentions to engage in digital currencies, amid four sources claiming that the hedge fund behemoth would do so by mid-2022.
“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,” a Bridgewater spokesperson told CoinDesk through email on February 22, 2022. Earlier in January, Bridgewater published a study on institutional crypto trends.
Other Hedge Funds
Recently, Ken Griffin, the CEO of the major hedge fund Citadel and a vocal critic of digital currencies, appears to have modified his views on the subject, CNBC reported.
Earlier, Griffin regarded virtual currencies as a “jihadist call” even against currency, and this week, he changed his mind and stated that “crypto has been one of the greatest stories in finance over the course over the last 15 years.”
Crypto is attracting the attention of some of the world’s most prestigious hedge funds. According to persons knowledge of the matter, firms formed by specialists such as Alan Howard, Brevan Howard Asset Management LLP Co-founder, and Billionaire Paul Tudor Jones who owns Tudor Investment Corp., are growing their crypto operations. The aforementioned information was reported by the Wall Street Journal (WSJ).
Moreover, In January, Brevan Howard announced the formation of a bitcoin hedge fund which will start accepting external venture capitalists, WSJ reported. The fund is betting on the price of Bitcoin (BTC), Ethereum (ETH), and several other cryptocurrencies, as well as looking for currency mismatch and investment in blockchain technology. Brevan Howard launched BH Digital, a new crypto branch in September that oversees around $250 million and employs 12 portfolio managers. Mr. Howard is also a cryptocurrency, blockchain, and digital currency investor.