$6 Billion Soros Fund CEO: Bitcoin Is More Than An Inflation Hedge

Dawn Fitzpatrick said yesterday that bitcoin has “crossed the chasm to mainstream” and that her fund owns “some coins.”

• Soros Fund CEO Fitzpatrick said bitcoin is seen as more than an inflation hedge. “I think it has crossed the chasm to mainstream,” she told Bloomberg in an interview.
• Fitzpatrick also disclosed that her fund owns “some coins” but not a lot.
• The Soros Fund CEO and CIO shared that inflation and real negative interest rates are prompting her fund to pile up cash and prepare for an eventual market crash and encouraged people to do the same.

Dawn Fitzpatrick, the CEO and chief investment officer of Soros Fund, a private investment management firm in the U.S. with over $6 billion in assets under management (AUM), joined Bloomberg for an interview on October 5 to discuss market outlook, inflation, and Bitcoin.

“Bitcoin is at $50,000 and I think that’s the really interesting thing, I’m not sure bitcoin is only viewed as an inflation hedge here,” Fitzpatrick told Bloomberg’s Erik Schatzker at the Bloomberg Invest Global Summit.

Fitzpatrick also disclosed that her fund owns “some coins,” however it was unclear if she was referring to bitcoin. In her view, bitcoin has many users worldwide and is not seen exclusively as an inflation hedge, contrastingly to the opinion of some mainstream investors like Paul Tudor Jones.

“I think it’s crossed the chasm to mainstream,” Fitzpatrick said.

The Soros Fund CEO and CIO continued, adding that cryptocurrencies at large have become a vast market.

“Cryptocurrencies now have a market cap of over $2 trillion,” she said. “There’s over 200 million users from around the world, so I think this has gone mainstream.”

When asked about her fund’s current market strategy, Fitzpatrick said that high inflation, paired with low-interest rates, is leading Soros Fund to take some profits and borrow against some securities to stockpile cash. In her view, a market crash is looming.

“I think we’ve all been surprised at how long [high inflation] feels like it’s going to last now,” she said, but it is reasonable to say that most Bitcoiners haven’t been very surprised.

“A lot of this is supply-side inflation, and it is not clear that monetary tools really deal well with supply-side inflation. I think the risks are that this can become self-reinforcing,” Fitzpatrick said.

In a world of quantitative easing and high inflation that erodes purchasing power, bitcoin comes to the rescue. The peer-to-peer electronic monetary network allows anyone to store and transact value in a currency that cannot be debased or confiscated.

Many high-profile economists and investors haven’t yet grasped this reality, which indicates that we are still early. Make sure to enjoy the low prices before corporate FOMO begins.