Bridgewater Associates, the hedge fund founded by billionaire Ray Dalio, is planning to back a cryptocurrency fund for the first time, CoinDesk reported, citing two sources close to the matter.
The move from the world’s largest hedge fund, currently with $150 billion in assets under management (AUM), could signal that institutional investors are finally starting to take cryptocurrencies seriously.
Bridgewater has been known for making contrarian bets that pay off, so this could be a sign that 2022 could be the year for cryptocurrency regulation, and with it broad legitimization.
The last few years have been big for cryptocurrency with prices soaring and crashing in what seems like a daily cycle. But we’ve also seen Bitcoin (BTC) and Ethereum (ETH) soar to new heights, and a host of other coins emerge as major players in the market. But there’s one thing that’s been missing from this digital revolution: legitimacy.
That could all change in 2022. Analysts are predicting that this could be the year when cryptocurrencies finally start to see some form of regulation. This would mark a huge step forward for the industry, and could pave the way for even more mainstream adoption.
Meanwhile, CoinDesk sources were quoted as saying that Bridgewater had no plans to invest directly in crypto assets but rather to back an external vehicle that is linked to the price of bitcoin. The publication also noted that the size of the fund’s investment was minuscule compared with its total AUM.
Other prominent crypto investors are also said to be in talks to invest in the fund, as per the report.
Dalio’s Stance On Cryptocurrencies
Dalio previously said he owned some bitcoin, calling the apex cryptocurrency with its fixed supply and incorruptibility capabilities, “one hell of an invention.” He has also explicitly called the digital asset an “alternative to gold” for the younger generation which deserves a “small portion” of a diversified portfolio.
The billionaire has also talked about blockchain technology, predicting that while some governments may try to outlaw it, the blockchain revolution is inevitable.
Following Dalio’s Bridgewater news, bitcoin broke through the $42,000 level after seeing a sudden surge in buying pressure. If the upward momentum continues and a 1.52% upswing above the $43,350 area is realized — though pushing through these levels, including the $43K one, without some consolidation could be a challenge — this will create an uptrend pattern in progress while also indicating a bullish breakout signal.
Under such scenario, investors and momo traders can expect uptrend continuation and a print of higher-highs toward the $50,000 psychological barrier.
At last check, Bitcoin was trading at around $42,700, up 3.9% over the past 24 hours. BTC has been on a downward trend since its $69,000 peak in early November.
Despite the fall, the asset which is currently down more than 20% year-over-year, is up a whopping 4,340% from its value five years ago.