Soros Fund Management has announced that it will start working with cryptocurrency investments. The $26 billion investment firm is one of the most valuable entities to get into the cryptocurrency field.
The most noteworthy point about this development comes as George Soros, the founder of the firm and father of current fund chairman Robert Soros, had criticized cryptocurrencies in the past. In January, Soros said at the World Economic Forum that cryptocurrencies are not legitimate and that the market is a bubble. He was also concerned about corrupt governments using those currencies to hide their assets in other countries.
But Adam Fisher, an investor for the Soros group, received approval from the firm to get the group to start working with cryptocurrency trades. No investments have been authorized just yet, but it is expected that the group will start trading currencies in the future.
Fisher works with macro investing functions within the Soros group. The approval will allow the bitcoin and other similar currencies to be parts of what the fund uses, although it is uncertain as to how much in the fund would be utilized.
Although George Soros has expressed worries with the cryptocurrency market, the Soros Fund Management group has been indirectly involved with such currencies. This comes from the fund’s investment in Overstock, an online retailer that has been a major supporter of the cryptocurrency market.
Did George Influence the Decline?
Although Soros had been judgmental of the cryptocurrency market, he did not necessary predict that the sell-off that impacted the market so far this year would actually happen. Soros had stated that he has concerns that the bitcoin could be a bubble, but he did not specify when he felt the decline was going to happen. However, his immense influence on the financial sector might have caused these remarks to potentially hasten the decline in the market.
His newfound support of the market could potentially be seen as a change in the market. The currency market in the hours after the Soros group announcement stabilized after some declines had come about in the past few days.
About the Group
A vital part of the Soros investment is that it may help improve upon the value of the market. The Soros Fund Management group has worked with public equity investments over the years as well as many commodity and currency markets. The group has been growing extensive since George Soros first formed the investment entity in 1969. The group has gotten more than $30 billion in profits since it first started up, thus making it one of the most successful investment firms in the world.
The Soros group has been active in many charitable efforts including support for improving conditions in third-world countries. The group has also worked towards developing clean and renewable energy solutions throughout the years and has been involved with the Tesla electric car company in recent time. However, the group has also been subjected to hostile conspiracy theories that are pitched by many on the alt-right.