Despite today’s stock exchange resurgence, many hedge funds and large institutions still view cryptocurrencies as mainstream. That was the conclusion reached by representatives from Man Group, Elliott Management and Soros Fund Management, who discussed the prospects for the Chinese stock market and its impact. Among them, Soros is the most prominent with interesting revelations about the company’s view of crypto.
Soros invests capital in cryptocurrency
Speaking at the Bloomberg Invest Global Conference held over the internet this morning, Dawn Fitzpatrick, chief investment officer at Soros Fund Management, with $ 27 billion in assets, said the fund currently owns a number of coins and the DeFi industry want to explore.
Speaking to Bloomberg’s Erik Shatzker, Fitzpatrick said she rebuilt the company’s cash system after investing $ 5 billion in March 2020 amid the market turmoil caused by the COVID-19 pandemic. This meant that Fitzpatrick sold part of the fund’s assets at the time and invested it in another asset class.
But it’s not that Soros is selling everything and giving up stocks. Fitzpatrick thinks these properties are still too cheap and people should take advantage of them.
“Businesses have learned to do things better, and Americans are pretty tight right now. What they want is the experience, not the goods, ”said Fitzpatrick.
Unsurprisingly, following the escalation of tensions between Soros and Beijing, Fitzpatrick said the company is clearly targeting its investments in China. “We’re not pouring money into China at the moment. Investors have to be very careful. “
She added that investors were surprised at what China was doing and how much economic damage the government was willing to take for its plan. The real reason Soros isn’t pouring money into China is because the money will go away quickly. Chief George Soros has even criticized the policies of Chinese President Xi Jinping, saying in a Wall Street Journal article last month that pouring billions of dollars into China is now a waste of money, a huge mistake.
Fitzpatrick predicts that many US-listed Chinese companies may move to Hong Kong soon. Alibaba Group Holding Ltd., JD.com Inc. and Didi Global Inc. are among the Chinese companies listed in New York. This trio is under a lot of pressure in 2021 as China cracks down on mega-cap tech companies. And that will be a while before venture capital firms in China have an easier and more official way of listing stocks.
Soros is the newest hedge fund to join the crypto battle.
“I don’t think Bitcoin should only be seen as a protection against inflation. I think it got through the odds of getting into the mainstream, “said Fitzpatrick.
Additionally, she believes that with a crypto market cap of over $ 2 trillion and over 200 million users around the world, crypto is more than just a new asset class. Or rather, it’s a booming industry and technology.
Fitzpatrick added that Soros Fund Management owns multiple cryptocurrencies – though not many. The company started trading Bitcoin months ago and has been keeping an eye on the space since 2018.
“We have a few coins, if not many. These coins are less interesting than the diverse use cases of DeFi and the like. “
Months ago, Fitzpatrick’s views on Bitcoin were slightly different. Looking at it as a commodity rather than a currency, she argues that the weakening of the fiat currency is the main driver of demand.
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