Some of the most prominent figures in the hedge fund industry are delving into the cryptocurrency space. Billionaire George Soros’ family office has begun trading bitcoin, according to people familiar with the matter.
In addition, Steve Cohen’s Point72 Asset Management is looking to hire a head of its cryptocurrency business.
Spokespeople for both companies declined to comment on the rumors.
Point72 has previously announced to investors that it is exploring investing in the cryptocurrency space through its flagship hedge fund or private investment arm. It is unclear what the new cryptocurrency position will involve.
Dawn Fitzpatrick, chief investment officer at Soros Fund Management, gave approval for traders to begin building bitcoin positions in recent weeks, sources said. It was reported back in 2018 that the firm was preparing to invest in the cryptocurrency, but had yet to act on it. At the time, Fitzpatrick gave the green light for Adam Fisher, head of macro investments at Soros Fund Management, to trade the virtual currency, but Fisher left the firm in early 2019.
In an interview in March, Fitzpatrick said bitcoin was interesting and that the firm had been investing in crypto infrastructure such as exchanges, asset managers and custodians.
In the interview, Fitzpatrick said that “real concerns about the devaluation of fiat currencies” are driving demand for cryptocurrencies. Bitcoin, I don’t think of it as a currency – I think of it as a commodity” that is easy to store and transfer, and in limited supply, she said. But she declined to say whether she owns bitcoin.
Soros is famous for shorting, and his methods are basically the same, that is, first accumulate ammunition, then create momentum or through market manipulation to make the price of the target asset plunge, and then profit by selling short or bottoming out, means including, shorting individual stocks, shorting stock index futures, shorting currencies, etc.
Related practitioners believe that if the Soros Foundation has the idea of shorting bitcoin and dumping it single-handedly, either they have a lot of chips (bitcoin) in hand or they can borrow a lot of chips and pay the corresponding interest. Previously, there were people who borrowed a lot of bitcoin to short the market in the past few weeks, but some analysts said that from the data, the actual situation is not high gain or even lose money. The market for cryptocurrency assets based on blockchain technology has too many differences and countless variables.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/once-a-southeast-asian-nightmare-shorting-predator-soros-begins-trading-bitcoin/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.