Soros is famous for betting against the pound in 1992 and has also said Britain may reverse Brexit as a result of economic slowdown. The move to bet in cryptocurrencies comes at a time when traditional money managers are staying away from cryptocurrencies.
Billionaire George Soros is planning to enter cryptocurrency trading after a member of his family office received internal approval for the same.
People familiar with the matter said that head of a macro investing for Soros Fund Management Adam Fisher received approval to trade cryptocurrencies. However, he is yet to start doing so.
It comes even as traditional money managers stayed away from such dealings. Like, the limited track record, lack of regulation, and volatility. It also comes after the price drop of Bitcoin and major cryptocurrencies.
Bitcoin had a rough week dropping to around $6,600 yesterday compared to last year’s high of $20,000 in December 2017. Hedge Fund Research said cryptocurrencies lost 52% in value in the first three months this year. In contrast, hedge funds gained an average of 0.4% over the same period through their stock investments.
On the same notes, funds that invested in cryptocurrencies last year have reaped huge profits. Hedge Fund Research said the gain is around 2,908 percent in returns. However, compared with 9 percent for hedge funds over the same period. This is even as 167 cryptocurrency-related funds opened this year according to Autonomous Research.
Many investors are off crypto because of the dropping prices, which relates to the current woes in the market such as increased regulations.
Earned fame in 1992
Soros earned fame by betting against the pound in 1992 using Quantum Fund. He bet successfully that sterling was over-valued against the Deutsche Mark. This made the then Prime Minister John Major withdraw pound out of the European Exchange Rate Mechanism (ERM).
He also recently said that Britain is approaching a tipping point that would slow the economy to possibly make it reverse Brexit.