Bitcoin

$6 Billion Hedge Fund CEO Reveals Crypto Exposure

The CEO and chief investment officer of Soros Fund, Dawn Fitzpatrick, has revealed that the private investment firm with over $6 billion in assets under management holds “some” bitcoin, and sees it becoming mainstream.

During an interview with Bloomberg’s Erik Schatzker at the Bloomberg Invest Global Summit, Fitzpatrick revealed she sees bitcoin surpassing the $50,000 as a “really interesting thing,” and is no longer certain BTC is only being used as an inflation hedge. The CEO 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 from our perspective.

Per Fitzpatrick, bitcoin is siphoning buyers away from the precious metal gold, which has been seen as the go-to inflation hedge. She noted that gold has been underperforming in the current context of “a fairly robust inflation narrative,” and believes it’s because “Bitcoin is taking some of its buyer base away.”

At one point during the interview, Fitzpatrick disclosed that the fund owns “some coins, not a lot” but added that the cryptocurrency itself was “less interesting than the use cases of DeFi [decentralized finance] and things like that.”

Talking about her fund’s current market strategy, she said that high inflation paired with low-interest rates is seeing the fund take some profits and borrow against some securities to accumulate cash as she sees a market crash occurring in the near future.

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