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Soros owns some coins and is looking forward to exploring the DeFi industry

Despite today’s resurgence in the stock market, many hedge funds and large institutions still see cryptocurrencies as mainstream. This is the conclusion made after representatives from Man Group, Soros Fund Management, and Elliott Management discussed and worried about the prospects of the Chinese stock market and its effects.

Soros is cashing out of stocks, putting some capital into cryptocurrencies

In an interview with Bloomberg Invest Global virtual conference, Dawn Fitzpatrick, the CIO of Soros Fund that manages the personal capital of billionaire George Soros stated that the fund owns some coins and is looking forward to exploring the DeFi industry.

soros-owns-some-coins-and-is-looking-forward-to-exploring-the-defi-industry

Dawn Fitzpatrick, CFO of Soros Fund Management

Speaking to Bloomberg’s Erik Shatzker, Fitzpatrick said that after a $5 billion investment that worked in March 2020 amid market turmoil caused by the COVID-19 pandemic, she has been selling, adding that if there were a crisis today, the firm could put another $5 billion to work in pretty short order.

But it’s not that Soros is selling everything. Fitzpatrick thinks the stock is still too cheap, and people should buy it.

“These companies have learned to do things better, and the U.S. consumer is now flush with cash, and they want to experience, not goods,” she stated.

Referring to crypto, in contrast to comments from months ago, she now says that Bitcoin is more than just a hedge against inflation, citing other use cases. After mentioning Bitcoin’s recent climb back to $ 50,000, Fitzpatrick questioned one of her previous assumptions about crypto.

“I’m not sure Bitcoin is only viewed as an inflation hedge here. I think it’s crossed the chasm to the mainstream”, she added.

Furthermore, with over $2 trillion crypto market cap and over 200 million cryptocurrency users worldwide, Fitzpatrick sees it as not just a new asset class but a booming industry and technology altogether. “The coins themselves are less interesting than the use-cases of DeFi and things like that,” said the CFO.

The other breaking news is, Soros is the latest hedge fund to have entered the crypto fray, following in the footsteps of Steve Cohen’s Point 72 and Dan Loeb’s Third Point. Soros Fund Management also owns some cryptocurrencies – although not many. The company started trading Bitcoin months ago and has been keeping an eye on the space since 2018.

“We own some coins – not a lot – but the coins themselves are less interesting than the use cases of DeFi and things like that,” she noted.

Months ago, Fitzpatrick’s views on Bitcoin – were slightly different. She called it more of a commodity than a currency and cited the debasement of fiat currency as a primary driver for its demand.

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