Billionaire George Soros’ investment fund has had its eye on bitcoin for a while now. Bitcoinist had reported in July that the fund was seeking to begin trading bitcoin. It would not be the first time the company was getting into the crypto market but it is the first time that the fund has traded in the digital asset directly. Bitcoin was at the top of its list. However, the fund had its eye on other crypto-properties in the area.
Soros Fund CEO Dawn Fitzpatrick has now confirmed that the investment firm had indeed begun trading in cryptocurrencies. Speaking on Bloomberg Live, Fitzpatrick stated that the Soros Fund had actually bought some cryptocurrencies. Apparently, the fund had actually purchased some coins in the previous month, however Fitzpatrick discussed that the fund did not own a great deal of cryptos. “We own some coins. Not a lot.” Fitzpatrick stated.
The CEO’s fund had actually started looking into the cryptocurrency market for over two years. The following years have actually seen the fund buy crypto facilities business like exchanges and custodians. The family office had participated in an investment round that had raised $200 million for New York Digital Investment Group.
It wasn’t till the bull rally of 2021 that the fund had actually validated that it was seeking to begin trading in bitcoin. It was not revealed what cryptocurrencies the fund held in its custody but it is confirmed that the firm is trading bitcoin.
Hedging With Bitcoin
Bitcoin is typically utilized as a hedge versus inflation. Investors have turned to the digital asset due to its year-over-year growth compared to the current inflation rate. Fitzpatrick acknowledged that the crypto might be utilized as an inflation hedge, however believes that the property has actually grown beyond simply this usage case. “I’m not sure Bitcoin is only viewed as an inflation hedge here,” Fitzpatrick said. “I think it’s crossed the chasm to mainstream.”
Another fascinating point from the CEO was the energy of the decentralized finance area. While the fund itself owns some coins, Fitzpatrick says that what is really interesting are use cases like decentralized finance (DeFi). The applications of crypto and blockchain innovation have actually gone simply beyond trading in coins. It is now a vehicle for earning passive income for a lot of investors.
Furthermore, Fitzpatrick included, with the existing assessment of the crypto market, the fund did not think that bitcoin can be relegated to the background any longer. If anything, crypto is now mainstream.
“Cryptocurrencies now have a market cap of over $2 trillion. There’s 200 million users around the world, so I think this has gone mainstream from our perspective.”
