Bridgewater fund leaks $3.1 billion short of Ethereum

The cryptocurrency market is always volatile, and recently the crypto community has been rattled by rumors that hedge fund giant Bridgewater Associates is holding a $3.1 billion Ethereum (ETH) short order. The source of this rumor stems from a photo purportedly of Bridgewater's portfolio that was leaked on social network X on February 18, 2024.

The viral image shows a portfolio table with a variety of assets, and most notably the inscription “Directional ETH Short” accompanied by a figure of $3.1 billion. The above information leads many to believe that Bridgewater is making a big bet against Ethereum.

As soon as it appeared, this rumor caused a lot of controversy. Part of the investor believes that this information is accurate, because the presentation of the information in the photo is quite similar to the style of Bridgewater's reporting, from the font, the arrangement of the tables to the terminology used.

However, many others expressed doubts about the authenticity of the rumors, with the following arguments:

• Transaction size is too large:$3.1 billion is equivalent to 1% of Ethereum's total market capitalization. A short order on such a large scale is sure to create significant price movements, something that has not happened until now. Could Bridgewater be able to “silently” make such a large transaction without being detected?
• Contrary to the investment philosophy: Bridgewater is known for its defensive investment style, which focuses on risk management and capital preservation. Short-selling a highly volatile asset like ETH for such a huge amount of money does not seem to fit the fund's traditional strategy.
• Unreliable sources: The first person to post the photo is believed to be related to the theft of ETH through the zKasino platform. This leads many to question the motives and reliability of the source.

Bridgewater Associates is one of the largest investment funds, founded by billionaire Ray Dalio in 1975. The fund is renowned for its unique investment philosophy based on macroeconomic principles and strict risk management. With assets under management of up to hundreds of billions of dollars, Bridgewater has a significant influence on global financial markets.

If Bridgewater does indeed undersell Ethereum to the tune of $3.1 billion, the action could create a domino effect in the market. Bridgewater's credibility and influence could cause other investors to worry and sell off ETH, leading to a drop in the value of the currency.

Moreover, the move could be seen as a negative signal for the entire cryptocurrency market, making investors wary and shifting capital flows to more traditional investment channels.

Rumors of Bridgewater underselling Ethereum come amid a market that is seeing a significant increase in short orders for the cryptocurrency. Data shows that, just in the last week, short positions on Ethereum have increased by 40%, and since November 2024, this number has soared up to 500%.

The main reason is believed to be the poor performance of Ethereum compared to Bitcoin. Over the past year, Bitcoin has increased by 104% in value, while Ethereum is up only 5.9%. This spread led many large investors, including hedge funds, to bet on the decline of Ethereum.

At the moment, there is not enough evidence to confirm or refute the rumor that Bridgewater is underselling Ethereum. Maybe this is just a joke, misinformation, or it can also be a sophisticated manipulation campaign. Investors should be very vigilant, should not rush to make decisions based on unverified information.