The largest hedge fund in the world will invest in crypto

The largest hedge fund in the world will invest in crypto - hedge fund discoveryThe largest hedge fund in the world is preparing investments in an "external vehicle" and will not dabble directly in the crypto-asset markets.

Billionaire Ray Dalio's fund currently has $ 150 billion in assets under management (AUM), and wants a piece of the digital asset pie. The man admitted that he owns some Bitcoins (quotation BTC) last year, so the move was not unexpected.

However, according to reports, the size of Bridgewater's cryptocurrency-related investments is miniscule compared to its AUM figure.

Research on cryptocurrency markets

In January, the company released a report on "Evolution of Institutional Investor Exposure to Cryptocurrencies and Blockchain Technologies," noting that it was actively researching the space.

A Bridgewater spokesperson confirmed this in February, telling CoinDesk:

"While we do not comment on our positions, we can say that Bridgewater continues to actively research cryptocurrencies, but currently has no plans to invest in cryptocurrencies."

The sources didn't elaborate on the details this time around, however. Last month they said Bridgewater is on a plan for the first half of this year before adding that they plan to have a "small slice of their fund" deployed directly into digital assets.

Another person familiar with the company's crypto investment strategy said:

“Bridgewater is trying to get involved. They are doing serious diligence: liquidity, service providers and so on ”.

The report added that the company is following a similar path to hedge funds Marshall Wace, Point72 and Brevan Howard, who reported making forays into the crypto sector last year.

Ray Dalio cautioned that cryptocurrencies were getting too much attention from regulators in January. However, the billionaire also suggested that investors allocate 1% of their portfolios in Bitcoin in the same month.

Prospects for the cryptocurrency market

Institutional interest in crypto assets has increased over the past year, and markets have generally remained in balance for most of 2022.

In the past 24 hours, total market capitalization gained 1,8% to $ 1,97 trillion. However, it's still down around 36% from its November peak.

Bitcoin added 1,9% on the day to trade at $ 41.766 at the time of writing, adding to the 5,3% it did in the past week.