Soros Fund Management will invest in cryptocurrency infrastructure as it seems BTC is very interesting to the fund managers according to the entity’s CIO as we can see more in today’s cryptocurrency news.
Bitcoin is at its inflection point caused by the current global economic situation according to the Chief Investment Officer of Soros Fund Management, Dawn Fitzpatrick. However, she warned that the upcoming launch of central bank digital currencies could harm the number one cryptocurrency in the short-term. Founded by Georgi Soros in 1969, the Soros Fund Management is a privately owned hedge fund sponsor that invests in public equity and fixed income markets and now the CIO of the fund spoke about the growing crypto space in a Bloomberg interview, saying that the entire industry is “very interesting.”
She noted that Wall Street giants already made a few investments in the infrastructure and now the Soros fund is looking to provide support as well:
“When it comes to crypto generally – we are in a really important moment in time. Something like bitcoin might have stayed a fringe asset, but for the fact that over the last 12 months, we have increased the money supply by 25% – so there’s a real fear of debasing fiat currencies.
When you think about bitcoin, I don’t think it’s a currency; it’s a commodity. But it’s a commodity that’s easily storable, easily transferrable. It has a finite amount of supply, and that supply halves every four years.”
The Soros Fund Management displayed a controversial approach towards BTC in the past as the founder called BTC a “typical bubble” in 2018 but the organization started trading BTC and other assets a few weeks later. With numerous governments and central banks developing their own central bank digital currencies, the crypto space debated for some time whether or not these innovations will harm BTC and its role in the digitizing world.
Dawn Fitzpatrick discussed this topic and talked about China which is the most advanced nation on the matter. She thinks that the country will try and impose the CBDC they will develop on other nations because of geopolitical reasons but this will mark a potential launch of a product as a concern for BTC but in the short-term:
“I think that it is a real threat [to bitcoin], but I think it will be temporary. I don’t think they [CBDCs] will be successful in permanently destabilizing bitcoin.”