George Soros’ Investment Fund Has Reportedly Started Trading Bitcoin

According to reports, the billionaire George Soros’s investment fund has started trading Bitcoin.

TheStreet.com reported Wednesday that speculations about the legendary investor’s firm entering cryptocurrencies were fueled by two sources who claimed Dawn Fitzpatrick, Soros Fund Management’s chief investing officer, had given her permission to trade Bitcoin. According to the report, the firm is also considering other digital currencies.

In a March interview Fitzpatrick stated that her company was investing in cryptocurrency infrastructure companies, such as asset managers, custodians, and exchanges. It was a “really important time” for cryptos, and Bitcoin could have remained a fringe asset if it hadn’t been for the fact that the money supply has risen by more than 25% over the past 12 months.

Fitzpatrick stated, “So there’s really a fear of debasing fiat currencies. When you think about Bitcoin I don’t believe it’s currency. I think it is a commodity. It’s easily storable, easily transferable, the IRS [Internal Revenue Service] classes it as a physical asset. It has a finite supply, that supply is halved every ten years. So I think it’s interesting.”

The No. The No. 1 cryptocurrency traded at $33,523 Thursday, a drop in 3% The second quarter ended with a drop of 3% after a strong start and an April record high of $65,000. This was due in part to China’s crackdown.

Soros Fund Management was also granted permission to trade digital assets in April 2018, according to Bloomberg. Soros told the World Economic Forum in January that Bitcoin and other digital currencies could not function as currency because of volatility.

One analyst was unsure what any new move by Soros’ firm might signify.

“Any major hitters in this mix is initially considered great to the adoption story,” said Chris Weston (head of research at Pepperstone in Melbourne) in emailed remarks.

According to Weston, the report simply stated that the firm had ‘cleared trade this’. “They could have been lumping in short positions in futures without knowing much about their plans. If they believe liquidity beneficiaries will take a hit when the Fed’s balance sheets grow at a slower pace and the front-end of the yield curve rises, then maybe being short crypto isn’t such a bad idea.

Soros is best known for shorting the pound during the 1992 Black Wednesday crisis. This led to the Bank of England abandoning the European Exchange Rate Mechanism. This move netted him $1 billion in profit.

TheStreet.com also reported that Point72 Asset Management, a hedge fund, was looking for a “head of crypto,” citing sources. This publication attempted to reach Point72 and Soros Fund Management.