George Soros: $26b dollar fund invests in crypto
Having called cryptocurrencies a bubble, and disputed Bitcoin’s status as a currency, Soros Fund Management, which manages the investments of the perennial investor George Soros, is ready to add crypto to its portfolio.
According to Bloomberg, which cites people familiar with the Soros investment strategy, head of macro investing Adam Fisher has been granted internal approval to trade cryptocurrencies in the last few months but hasn’t made any moves yet. So, it’s still unclear as to which exact token or technology they’ll decide to pour money into. Or even how many.
“Bitcoin is not a currency because a currency is supposed to be a stable store of value and the currency that can fluctuate 25% in a day can’t be used for instance to pay wages because wages drop by 25% in a day. It’s a speculation. Based on a misunderstanding,” explained Soros back in January, while BTC was still reeling from a price drop following all-time highs at the end of 2017.
“As long as you have dictatorships on the rise you will have a different ending, because the rulers in those countries will turn to Bitcoin to build a nest egg abroad,” Soros added, but didn’t go as far as predicting the hard drop experienced recently by the major tokens. Since his comments, BTC has fallen 40% but has enjoyed a mini renaissance recently, pushing it back up above $8,200, according to Coinbase’s price index at the time of writing.
This isn’t Soros’ first foray into digital money though. His investment fund became the third-largest shareholder in the pro-cryptocurrency retailer Overstock back in February. And given that his comments came before a dramatic dip, it’s not impossible that the fund’s intention to directly invest in cryptocurrencies will provide a reverse effect and build on the recent, yet slow, rise in prices.