Soros Fund Management, the investment fund founded by billionaire George Soros, is reportedly planning to trade cryptocurrencies, months after Soros himself called bitcoin a misnomer and a typical bubble.
Founded in 1969, Soros Fund Management is the primary adviser for the Quantum Group of Funds, a family of funds dealing in international investments. It is currently structured as a family office but formerly as a hedge fund. In 2010, it was reported to be one of the most profitable firms in the hedge fund industry, averaging a 20% annual rate of return over four decades.
According to Bloomberg, citing sources familiar with the matter, Soros Fund Management’s Adam Fisher received internal approval to trade digital assets in the last few months but has not taken action yet.
The billionaire investor is no longer involved in the day-to-day operations of the Soros Management Fund. Therefore, it is quite unlikely that he was involved with the rumored decision to trade digital assets. The move also contrasts with Soro’s negative view of the crypto market
In a speech at the World Economic Forum in Davos in Jaunury, Soros said bitcoin is not a currency, because a currency is supposed to be a stable store of value.
“Bitcoin is a misnomer and is a typical bubble, which is always based on some kind of misunderstanding,” he said. “A 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.”
While criticizing the cryptocurrency in January, the billionaire investor did not provide any price predictions. But since the comments were made, bitcoin has fallen roughly 50% for the year so far and is trading at about a third of its record high above $19,000 hit in mid-December.
That said, Soros Fund Management’s interest in the crypto space isn’t new. Last year, the company took an 8.99% stake in Overstock.com to become the third-largest shareholder. Overstock is the first major retail company to accept bitcoin as a payment option. The company had also planned to start an exchange for cryptocurrencies as well as offer tokens that could trade on the platform.
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