Coins will be added to the world's largest hedge fund after its founder called Bitcoin 'one hell of an invention'

Founder Ray Dalio says Bitcoin is a 'amazing achievement,' and his hedge fund thinks institutional investors will start to use it in the next few 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 back 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 "miniscule," according to one source, while four sources claim the hedge fund will enter 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 becoming 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 equities as two possible choices.

Dalio, 72, has stated that he is a firm believer in blockchain technology, predicting that it will 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.

An Insight into Ray Dalio's Thinking

Back in January 2021, Dalio had described Bitcoin as "one hell of an invention," writing on Bridgewater's website:

"To have invented a new type of money via a system that is programmed into a computer and that has worked for around 10 years and is rapidly gaining popularity as both a type of money and a storehold of wealth is an amazing accomplishment."

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:

"Since the way Bitcoin works is fixed, it won't be able to evolve and I presume that a better alternative will be invented and pass it by. I see that as a risk."

On Tuesday morning, BTC was trading at $42,595.80, its highest level in almost three weeks, after climbing by about 3% in the previous 24 hours. The majority of these increases occurred during Asian nighttime trade.

Looking ahead, $45,000 is the level to keep an eye on, as it has been the price of Bitcoin's upper limit since the beginning of the year.

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