Soros Fund Management CIO Talks About Bitcoin and Investing in the Crypto Space

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Earlier today (March 25), Dawn Fitzpatrick, chief investment officer at Soros Fund Management (which is structured currently as a family office), gave an interview to Erik Schatzker on Bloomberg’s “Front Row”, where she talked about a number of interesting crypto-related topics.

Fitzpatrick told Schatzker:

We think the whole infrastructure around crypto is really interesting, we’ve been making some investments into that infrastructure and we think that is at an inflection point. I’d say it’s everything from… custodians to the mundane, like tax reporting on your on your crypto gains and everything in between…

So when it comes to crypto, generally, I think we’re at a really important moment in time in that something like Bitcoin might have stayed a fringe asset but for the fact that over the last 12 months we did increase money supply in the US by 25%.

So, there’s a real fear of debasing of fiat currencies and when you think about Bitcoin, I don’t think it’s a currency. I think it’s a commodity, but it’s a commodity that’s easily storeable. It’s easily transferable. The IRS classifies it as a physical asset. It has a finite amount of supply and that supply halves every four years…

When you look at gold price action… it’s struggled getting traction.

When Schatzker asked her if her firm owns any Bitcoin, she laughed and said that she would not answer the question.

Schatzker then told her that’s what he would call “a mysterious response.”

Fitzpatrick then added:

One thing when you think about Bitcoin is central bank digital currencies are going to be here I think quicker than people expect. China’s been running their trial for a while now, and I think there’s some strategic reasons why they are going to be a first mover and I do think from a geopolitical perspective they want that to be used around the world, and it is a potential threat to Bitcoin and other cryptocurrencies.

However, she is not too worried about the impact of China’s CBDC on Bitcoin:

I think it is a real threat, but I think it will be temporary. I don’t think they’ll be successful in permanently destabilizing Bitcoin.