By Laura Sanchez
Investing.com – Bridgewater Associates, the world’s largest hedge fund with $150 billion under management, plans to back a cryptocurrency investment fund for the first time.
The fund, founded by billionaire Ray Dalio, is preparing to invest in an external vehicle with exposure to the cryptocurrency sector. For now, it will not invest directly in cryptoassets, according to CoinDesk.
Recently, Dalio acknowledged that he has some small investments in , which he says is “almost the alternative to for a younger generation” and “has merit as a small portion” of a diversified portfolio.
However, Dalio also warned that governments would ban cryptocurrencies if they were too successful.
Earlier this month, US President Joe Biden signed an executive order requiring federal agencies to conduct a broad review of their policies relating to cryptocurrencies and other digital assets.
Several hedge funds have already invested in the digital asset space. For example, London-based Brevan Howard launched a cryptocurrency hedge fund in January, according to the Wall Street Journal.
Steve Cohen’s Point72 Asset Management venture capital arm led a $21 million Series A funding round in cryptocurrency market intelligence firm Messari in 2021, according to MarketWatch.
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