George Soros’ Investment Fund Has Reportedly Started Trading Bitcoin
Renowned hedge fund Soros Fund is set to invest in Bitcoin and other cryptocurrencies.
According to TheStreet, “Soros Fund Management in recent weeks gave the internal green light to actively trade Bitcoin and perhaps other cryptocurrencies, according to two people with knowledge of the matter.”
Founded by billionaire investor George Soros, the Soros Fund is one of the largest funds in the world, holding over twenty-five billion dollars in estimated asset under management. In addition to their massive size, the Soros Fund is also one of the most successful funds of all time, boasting an impressive track record of 20 percent annual growth from its founding in 1970 to 2010. Given the Soros Fund history and establishment as a reputable fund, the decision to move into cryptocurrency points to the ever-growing acceptance of Bitcoin and other cryptocurrencies: once considered the currency of criminals and hackers, Bitcoin and other crypto assets are now becoming investable assets for investment banks and hedge funds. Such shifts in attitudes towards cryptocurrencies reflects responses to recent fiscal monetary policy.
“Recent economic conditions have brought Bitcoin to an inflection point: When it comes to crypto generally, I think we are at a really important moment in time in that something like Bitcoin might have stayed a fringe asset, but for the fact that over the last 12 months we’ve increased money supply in the U.S. by 25% percent…There is a real fear of debasing fiat currencies. When you look at gold price action, in the context of a fairly robust inflation narrative, it’s struggled getting traction, and I think it’s because Bitcoin is taking away some of its buyer base,”
-Soros Fund Chief Investment Manager Dawn Fitzpatrick
Fitzpatrick has also told Bloomberg in a March interview that the company had been investing in cryptocurrency infrastructure companies — exchanges, asset managers and custodians. Clearly infrastructure companies was just a start.
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