Soros Fund Management, as the asset manager of investment legend George Soros, has confirmed investments in cryptocurrencies. Bitcoin has arrived in the mainstream, it says in justification.
George Soros became a celebrity among investors at the latest with his bets against the British pound in 1992, and the entire financial world is therefore looking at strategies of the now 91-year-old. Against this background, Soros Fund Management’s commitment to Bitcoin and Co. is remarkable. In an interview with Bloomberg, the head of the fund, Dawn Fitzpatrick, said that they hold “some coins, not many” when asked about cryptocurrencies. Soros Fund Management manages George Soros’ assets as a family office.
While Fitzpatrick doesn’t directly reveal which altcoins have found their way into Soros Fund Management’s portfolio besides Bitcoin (BTC). But she does touch on two important themes. One is DeFi (Decentralized Finances), which is the realization of financial transactions via the blockchain and through smart contracts. In this way, DeFi bypasses banks and traditional exchanges and is experiencing rapid growth. Fitzpatrick now says that from her point of view, the exciting point here is the application fields of DeFi and less concrete altcoins.
When it comes to Bitcoin, Fitzpatrick expresses a similarly nuanced view for Soros Fund Management. Bitcoin’s often invoked function as a bulwark against inflation is no longer the sole focus. As recently as March, Fitzpatrick had classified Bitcoin as a possible niche investment, citing the Federal Reserve’s expansionary monetary policy as a reason. Now, however, she says Bitcoin has arguably entered the mainstream, pointing to more than 200 million users of BTC worldwide. If you like, you can link here to thought experiments on Bitcoin as a reserve currency for the crypto industry and a substitute currency.
Soros’ change of course – Bitcoin profits
Observers recall that George Soros had been skeptical of Bitcoin in the past and did not see cryptocurrencies as suitable for everyday use due to high volatility. The latest comments from his Soros Fund Management are therefore interpreted as a significant correction of the strategy and probably contributed to the significant gains in Bitcoin yesterday (Wednesday). As mentioned at the beginning, Soros plays the role of an influencer in the public perception for investors. The same-old Warren Buffett, on the other hand, has so far stuck to his staunch opposition to Bitcoin.
Conclusion: Soros pro Bitcoin – paradigm shift in old age
The discussion about Bitcoin’s usefulness and future prospects often reveals a generational conflict as well. The long-established Wall Street establishment would have preferred to ignore BTC, while the younger movers and shakers from Silicon Valley rewarded Bitcoin early and then increasingly with sympathy and investments. Seen in this light, Soros Fund Management’s new-found assessments are a signpost that goes beyond a mere investment in Bitcoin and could also make other representatives of the old guard think twice.
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