Soros Fund Management Reported to Have Expanded Into Crypto Assets, Opening up BTC Trading

A report by TheStreet revealed that the fund has obtained the green light to trade in Bitcoin.

By
Chung Yee
on
July 3, 2021
Category:
Blockchain News

Soros Fund Management

George Soros is a renowned name in the world of finance. He founded Soros Fund Management, an investment management firm. In an article by TheStreet, it was revealed that the fund management firm has obtained permission to trade in Bitcoin and is also looking at other cryptocurrencies. The fund management firm was previously a hedge fund with an illustrious and successful track record and is headed by the man famously known as ‘the man who broke the Bank of England’

In the report, it was revealed that Dawn Fitzpatrick and her team has been exploring the cryptocurrency space for some time and is now prepared to dive deeper into the crypto space. The Chief Investment Officer of the Soros Fund Management had been speaking favourably of the cryptocurrency. In March, 2021 she had openly admitted that they have been taking steps by making investments in infrastructures around the crypto industry according to an interview with Bloomberg

Source : Dawn Fitzpatrick the Chief Investment Officer of Soros Fund Management 

This move comes as no surprise as the fund management firm has been taking steps by positioning itself within the crypto space. In early March, the New York Digital Investment Group (NYDIG) announced that it has completed a $200 million growth capital funding round for businesses related to Bitcoin. NYDIG is a strategic partner of Morgan Stanley and Soros Fund Management. Morgan Stanely has recently made a bullish move in the industry by buying more than 28,000 shares in Grayscale Bitcoin Trust. 


Strategic Positioning

The decision to step into the crypto space by institutional fund management firms is telling of a shift in policy when it comes to crypto assets and the related infrastructure. Whilst the crypto space is still rocked by regulatory restrictions, price volatility and environmental concerns, the institutions are arriving in droves. These institutions are influential industry leaders in their field. 

George Soros is widely known as the man with deep knowledge about the global market and excellent source of information. The man who founded the Soros Fund Management has not made any comments on cryptocurrencies but the official stand by the Chief Investment Officer is reflective of the overall sentiment. 

The firm sees cryptocurrencies as a commodity that is easily storable and easily transferable. These characteristics as described by Fitzpatrick fits the description of a store of value that is more versatile than gold. The narrative that has been building around Bitcoin centres on its ability to be a better store of value than gold. Gold has a market capitalization of $11.271 trillion

Source 

This itself presents a huge investment opportunity from two perspectives, first by investing in the crypto assets and secondly by investing in companies offering crypto related products or services.


Piecing the Puzzles Together

The moves by institutional giants and large funds management firms are painting a different picture from the fear, uncertainty and doubt that has been gripping the market of late. Major financial institutions such as Morgan Stanley and JP Morgan are dabbling into crypto assets based on the demand by its clients for exposure in the new asset class. The changing tide is suggestive of a global trend that is shifting towards adoption of crypto assets. 

Fitzpatrick in her interview with Bloomberg in March, acknowledges that Central Bank Digital Currency (CBDC) will eventually be introduced and used but that it does not affect the value of crypto assets that plays the role of a commodity. Commodity derives its value from the utility that it serves. Crypto assets at the very least will have utility based on the fact that it can store value.

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Chung Yee

Chung Yee has a legal background and has been involved in research works for the legal and compliance industry. Writing is his passion, centered on topics such as the blockchain and finance. His largest crypto holdings are Solana, Ethereum, and BNB Token.

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