George Soros thinks cryptocurrencies are a bubble. He’s about to start trading them anyway.
The billionaire investors and business magnate won’t be trading them personally, of course, but Bloomberg reports that Adam Fisher -- who runs Soros Fund Management’s macro investing operation -- has secured internal approval to begin trading cryptoassets.
Fisher reportedly received the go-ahead to begin trading cryptocurrencies sometime during the last few months, which is notable given public statements Soros made about cryptoassets during the same period.
Soros was one of many prominent financiers to address cryptocurrencies as an asset class at this year’s World Economic Forum in Davos, and he did not strike an optimistic tone.
But though he denigrated Bitcoin as a bubble, he also argued that cryptocurrencies would not have a “very sharp break” as most asset bubbles do.
“Normally when you have a parabolic curve, eventually it has a very sharp break,” Soros said. “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.”
Sources cited in the report said that Fisher had not yet begun trading cryptocurrencies through the $26 billion asset manager and is still weighing his options.
Last month, CCN reported that billionaire Alan Howard -- a founding partner of Brevan Howard Asset Management -- had begun making personal investments in cryptoassets and had even hired staff to assist him in this new venture. However, Brevan Howard made clear that the firm itself is still steering clear of the nascent cryptocurrency markets.
Indeed, institutional capital has by and large remained on the sidelines, despite predictions that it would wade into the cryptoasset space in recent months.
Now that Soros is about to begin trading cryptocurrencies, however, that tide could turn.
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