Billionaire George Soros’ investment fund has been eyeing bitcoin for quite some time. Bitcoinist had reported in July that the fund was looking to start trading bitcoin. It wouldn’t be the first time the company has entered the crypto market, but it is the first time the fund has traded the digital asset directly. Bitcoin was at the top of his list. However, the fund had its eye on other crypto-assets in the space.
Soros Fund CEO Dawn Fitzpatrick has now confirmed that the investment firm has indeed started trading cryptocurrencies. Speaking on Bloomberg Live, Fitzpatrick said the Soros Fund has invested in certain cryptocurrencies. Apparently, the fund bought coins last month, but Fitzpatrick explained that the fund doesn’t have a lot of crypto. “We have coins. Not a lot. ”Fitzpatrick said.
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The CEO’s fund had actually started looking into the cryptocurrency market for over two years. The following years saw the fund invest in crypto infrastructure companies like exchanges and custodians. The family office had participated in a fundraising fundraiser that raised $ 200 million for the New York Digital Investment Group.
It wasn’t until the 2021 bullish rally that the fund confirmed that it was looking to start trading bitcoin. It has not been revealed which cryptocurrencies the fund has in its custody, but it is confirmed that the company is trading bitcoin.
BTC price trailing $54K | Source: BTCUSD on TradingView.com
Hedging with Bitcoin
Bitcoin is often used as a hedge against inflation. Investors have turned to the digital asset because of its year-over-year growth relative to the current rate of inflation. Fitzpatrick acknowledged that crypto could be used as a hedge against inflation, but believes the asset has grown beyond this use case. “I’m not sure Bitcoin is only considered an inflation hedge here,” Fitzpatrick said. “I think he crossed the chasm to generalize.”
Another interesting point from the CEO was the usefulness of the decentralized financial space. While the fund itself has coins, Fitzpatrick says what’s really interesting are use cases like Decentralized Finance (DeFi). The applications of crypto and blockchain technology have gone beyond trading in coins. It is now a vehicle for earning passive income for many investors.
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Additionally, Fitzpatrick added, with the current valuation of the crypto market, the fund no longer believed that bitcoin could be pushed into the background. If anything, crypto is now mainstream.
“Cryptocurrencies now have a market capitalization of over $ 2,000 billion. There are 200 million users around the world, so I think it has become widespread from our point of view.
Featured image from Corporate Finance Institute, chart from TradingView.com