Insider reveals Bridgewater Associates to launch its first cryptocurrency fund in mid-year, spokesperson: Currently no such plans

According to sources familiar with the matter, Bridgewater Associates is planning to launch its first cryptocurrency fund in mid-2021, although it is just a small part of its total asset size. The information currently available is quite vague and fragmented, and it seems that the fund will not directly invest in cryptocurrency spot assets, but rather in other related derivatives.

Insider Information

CoinDesk reports that Bridgewater Associates is preparing to launch its first cryptocurrency fund, planning to invest in crypto assets "indirectly" through external tools, with negotiations underway with other crypto investors to invest in the fund.

There are conflicting reports at the moment, as anonymous sources had previously indicated in February that Bridgewater planned to deploy a small portion of funds "directly" into digital assets and was actively exploring the crypto space, conducting research and seeking collaborations with liquidity providers.

A spokesperson for Bridgewater Associates told CoinDesk that there are currently no plans to invest in cryptocurrencies, but CoinDesk revealed that four anonymous sources from Bridgewater claimed that the hedge fund giant would enter the crypto space by mid-year.

Ray Dalio's Stance

Ray Dalio, the founder of Bridgewater Associates, revealed last May that he holds some Bitcoin for hedging against inflation and diversifying his investment portfolio.

He remains a staunch advocate of gold and has repeatedly stated that the "biggest risk with Bitcoin is its success," as it would lead to governments losing control over currency and potentially cracking down on Bitcoin. He cited the example of the 1934 gold ban under the Gold Reserve Act, where private possession of gold was illegal, punishable by up to ten years in prison.