Ray Dalio, the founder of Bridgewater Assets, has called Bitcoin a “great accomplishment,” and his hedge fund believes institutional investors will adopt it in the coming years.
Months after its billionaire founder Ray Dalio admitted that he owns Bitcoin, the world’s largest hedge fund is apparently intending to start obtaining exposure to cryptocurrencies.
According to a CoinDesk article, Bridgewater Associates plans to support a crypto fund rather than invest directly in digital assets.
Given the hedge fund’s $150 billion in assets under management, this is a huge event, and it may push more institutional investors to reconsider crypto despite the present dip.
Bridgewater’s crypto investment will be “minuscule,” according to one source, while four sources claim the hedge fund will join the area by the middle of next year.
Bridgewater researchers anticipated that institutional investor adoption “seems likely to rise up in the future years” — and that the crypto markets are getting large enough to be considered seriously — back in January.
The fund said it would be watching to see if institutions tried to obtain outright exposure to crypto by adding it to their balance sheets, noting arbitrage opportunities and venture capital or stocks as two possible choices.
Dalio has stated that he is a big believer in blockchain technology, predicting that it would be transformative. He is concerned that countries that see Bitcoin as a threat would try to restrict it, and despite maximalist predictions that BTC will one day become the world’s reserve currency, he does not believe central banks will ever acquire considerable amounts of the cryptocurrency.
Ray Dalio’s Perception
Dalio had previously lauded Bitcoin as “one heck of an innovation,” writing on Bridgewater’s website in January 2021:
“It’s an incredible achievement to have established a new sort of money using a computer-based system that has been in use for roughly ten years and is fast gaining popularity as both a type of money and a store of wealth.”
The billionaire also said that BTC has earned a reputation as a compelling “alternative gold-like asset” — and that there was a “growing need” for assets with restricted supply due to the world economy’s high debt levels and quantitative easing.
Dalio seems to be clear-eyed about the risks that Bitcoin may face in the future, citing concerns that “better” cryptocurrencies may emerge to supplant it:
“Because the way Bitcoin works is set in stone, it won’t be able to change, and I expect a better alternative to emerge and overtake it. That, in my opinion, is a danger.”
Looking ahead, $45,000 is the level to keep an eye on since it has been the price of Bitcoin’s upper limit since the beginning of the year.
On Tuesday morning, BTC was trading at $42,595.80, its highest level in over three weeks, after climbing by approximately 3% in the previous 24 hours. The majority of these increases occurred during Asian night time trade.
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