Bitcoin at an inflection point, says Soros Fund Management CIO

  • According to Dawn Fitzpatrick, Bitcoin is at an inflection point given the current economic environment.
  • Bitcoin is about to displace gold as a store of value.

Soros Management Fund Chief Investment Officer (CIO) Dawn Fitzpatrick expressed a bullish stance on Bitcoin in a recent interview with Bloomberg. As part of the news magazine’s crypto section, Fitzpatrick stated that the cryptocurrency industry is at an “inflection point.”

Formerly structured as a hedge fund, Soros Fund Management operates as a family office. The Soros firm was founded in 1970 by the legendary and equally controversial George Soros and has about $28 billion in assets under management. Since its inception, Soros Fund Management is estimated to have generated more than $32 billion in profits.

Fitzpatrick acknowledged that her firm has made “investments” in the crypto market’s infrastructure. The executive believes the market has seen significant maturation through platforms that trade cryptocurrencies, but also in “mundane aspects” such as paying taxes for institutions as large as the Soros firm. Fitzpatrick added:

When it comes to crypto in general, I think we are at an important moment in time. Something like Bitcoin could have remained a static asset, but the fact that in the last 12 months we have increased the money supply by 12%, there is a real fear of currency devaluation.

The executive rejected Bitcoin as a currency and classified it more as a commodity. Informed of its characteristics, Fitzpatrick added that Bitcoin is a “physical asset,” portable, easy to store, easy to transfer, and with an issuance rate that halves every 4 years. All of this has led to the cryptocurrency displacing gold as a store of value, according to the CIO of the Soros Management Fund.

This claim is backed up by recent data from Bloomberg. As the chart shared by Mike McGlone, senior commodities strategist at Bloomberg Intelligence, shows, gold price volatility has remained low over the past year. In what Fitzpatrick called a “highly inflationary” environment, this is an indication that Bitcoin is replacing gold.

China as a threat to Bitcoin

One of the consequences of BTC becoming a legitimate asset for large investors and institutions is the accelerating adoption of central bank-issued digital currencies (CBDCs). Fitzpatrick believes that China, currently testing its digital Yuan, could become “from a geopolitical standpoint” a threat to Bitcoin and other cryptocurrencies.

I think it’s a real threat, but I think it will be temporary. I don’t think they will succeed in destabilizing Bitcoin.

When asked if she owned Bitcoin, the executive said with a laugh, “I won’t answer that.”

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