Soros Fund Allows Bitcoin Trading, Cohen’s $22B Firm Hiring Crypto Head, & Thoma Bravo is a “Big Believer”
“You have a world of young people that want their own financial system and their own culture, and it is very powerful,” says Orlando Bravo.
Soros Fund Management, the family office of billionaire Geroge Soros has been given the green light to actively trade Bitcoin in recent weeks.
TheStreet reported that Dawn Fitzpatrick, chief investment officer at the investment firm, has cleared its traders to trade bitcoin, citing two people with knowledge of the matter. Back in March, Fitzpatrick said crypto was at “an inflection point.”
As we reported at that time, when asked if she owns any bitcoin, Fitzpatrick responded, “I'm not going to answer that.”
She also said that the “real fear of debasing fiat currencies” was driving demand for crypto and that Bitcoin is not a currency but a commodity.
In April, Soros also participated in a $200 million strategic partnership funding round for Stone Ridge’s subsidiary NYDIG, which has been collaborating with banks all over the US to offer bitcoin services to their users.
According to one of the sources, the firm has been “doing more than just kicking the tires” on crypto.
The firm first started preparing to invest in crypto in 2018, and at the time, macro-investing head Adam Fisher was given the go-ahead to trade crypto assets, who left the firm in early 2019.
Besides Soros Fund, another big name in the hedge fund industry wading deeper into the cryptocurrency market is Point72 Asset Management. Steve Cohen’s $22 billion firm is seeking to hire a head of cryptocurrencies, but it isn’t clear what this new position would entail.
This new hiring comes after Point72 said to investors that it was exploring investing in the sector through its flagship hedge fund or its private investment unit.
“We are exploring opportunities around blockchain technology and its transformative and disruptive capabilities,” Point72 said in a May letter to investors.
“We would be remiss to ignore a now $2 trillion cryptocurrency market.”
Point72’s rival Millennium Management has already been active in crypto-related futures, and exchange-traded funds, with macro trader Paul Tudor Jones, Brevan Howard Asset Management, and hedge fund manager Dan Loeb is also taking a “deep dive” into crypto.
Meanwhile, Orlando Bravo, the billionaire co-founder of private-equity powerhouse Thoma Bravo finds blockchain technology “completely disruptive.”
As for the currencies built on top of that, they will be “worth more if more people adopt them, and the bet is it's highly likely that more people will adopt them than less,” he added.
Thoma Bravo has one of the best track records in private equity, with its AUM having grown 8x in just half a decade and annualized returns at its flagship funds averaging about 40%. Bravo, in an interview on Wednesday, said,
“You have a world of young people that want their own financial system and their own culture. And it is very powerful, and I'm a big believer in it.”
Amidst so much interest in crypto, on July 1st, Germany is also allowing 4,000 investment funds, collectively managing $1.8 trillion, to invest up to 20% in Bitcoin.