Billionaire Investor George Soros Wants to Enter Into Cryptocurrency Trading
Right just when the crypto markets have been showing a dismal performance since the beginning of 2018, there’s a good new that can possibly give some hope and bring optimism back to the crypto community.
Billionaire investor and hedge fund titan George Soros is planning to make a big entry in the crypto market. Although Soros referred to cryptocurrencies as a big bubble back in January 2018, a report from Bloomberg says that Adam Fisher - the New York-based Soros Fund Management who looks after overseas macro-investing has secured an internal approval to trade in digital currencies.
The news comes at a time when Bitcoin has dropped to a third of its valuations back in mid-December 2017 when it was trading at a high of around $20000. Reports suggest that Fisher received the approval almost during the same time when Soros had made that public statement for crypto assets.
Back at the World Economic Forum 2018, Soros said that cryptocurrencies should be treated as an asset class and cannot function like real currencies due to their extremely volatile nature. Although he belittled Bitcoin heavily at that time, he said that unlike other bubbles cryptocurrencies won’t have a “very sharp break”.
Soros said: “Normally when you have a parabolic curve, eventually it has a very sharp break. But in this case, as long as you have dictatorships on the rise you will have a different ending, because the rulers in those countries will turn to Bitcoin to build a nest egg abroad.”
However, according to the sources of this report, Fisher has yet not started trading in the digital currencies and is currently weighing options for doing so.
The way the crypto markets have retracted from its peak has caused several big investors to reconsider their decisions for crypto investments. Mike Novogratz, former hedge fund manager has shelved his plans to launch a crypto fund back in December and rather has shifted his plans to focus on a merchant bank based on cryptocurrencies and other ventures based on the blockchain technology.
Another report earlier this year shows that Alan Howard — a founding partner of Brevan Howard Asset Management has personally indulged in making an investment in digital currency assets and is also hiring staff for his new venture.
One of the major reasons that has resulted in a sharp fall in market liquidity to that of last year is that there has been a growing regulatory pressure from government bodies across the globe over alleged reasons of fraud and money laundering.