By
Chimamanda U. Martha
April 24th, 2024
The Soros Fund Management has sought exposure to digital assets as per the recent admission of the CIO. The fund has started cashing out of stocks and said it will not be investing in China for now.
Soros Fund Management, the family office of billionaire George Soros, has publicly admitted to investing in crypto. Dawn Fitzpatrick, the CIO of Soros Fund Management told Bloomberg in an interview on Tuesday, October 5.
The Soros fund Management Office manages more than $27 billion in assets under management. During the interview CIO Fitzpatrick added:
“From our perspective again, we own some coins, not a lot, and the coins themselves are less interesting than the use cases of DeFi and things like that.”
The CIO comments confirm previous reports that Soros Fund started trading in Bitcoin. Further speaking about Bitcoin, Fitzpatrick said:
“I’m not sure bitcoin is only viewed as an inflation hedge. Here I think it’s crossed the chasm to mainstream. Cryptocurrencies now have a market cap of over $2 trillion. There’s 200 million users around the world, so I think this has gone mainstream”.
This is the first public admission from the George Soros family office regarding their investment in Bitcoin. Besides, the fund already has some investments in crypto firms like NYDIG and Lukka.
Back in March, Fitzpatrick opened up her views on central bank digital currencies. That CBDCs “are going to be here I think quicker than people expect”. However, she also said that CBDCs could be a threat to Bitcoin and other digital assets.
The recent admission about crypto investment from the George Soros family comes just at a time when the SEC said that it would not be banning cryptocurrencies.
Soros Fund Cashing Out of Stocks while Adopting Crypto
It looks like the Soros fund Management is playing it absolutely safe. CIO Dawn Fitzpatrick said that they have started cashing out of stocks after a solid run-up at Wall Street this year. She also noted that the company has built enough cash buffer after putting $5 billion to work during the market crash of March 2020.
Fitzpatrick also touched down upon the company’s investment in China adding that “we are not putting money into China right now”. She also noted that investors need to be careful in putting money into US-China listings.
Speaking to the WSJ last month, George Soros openly criticized the policies of the Chinese government. He further noted: that “pouring billions of dollars into China now is a tragic mistake”.
“For twenty years, Chinese tech companies having Western capital and a Western vested interest in their success very much suited China’s goals. They don’t need that anymore, so they can take their $700 billion and take it back onshore into Hong Kong,” Fitzpatrick said. “And I think that’s what they’re going to do.”
But the Soros Fund is not selling everything. Fitzpatrick believes that the recovery stocks are still too cheap to be bought.