George Soros, a U.S. investor and social worker of Hungarian descent, spoke on the sidelines of the World Economic Forum (WEF) Annual Meeting on January 2, 2011 in Davos, Eastern Switzerland.
Fabris Kafrini | AFP | Getty Images
Source fund management, a wealth management firm founded by billionaire investor and philanthropist George Soros, has revealed that it owns the cryptocurrency Bitcoin.
Don Fitzpatrick, chief executive officer and chief investment officer at Soros Fund Management, said in an interview at a Bloomberg event this week that “some coins … but not too many” from the family office.
Soros Fund Management, which is known for making huge profits on conventional currency investments, did not immediately respond to a CNBC request when asked how many bitcoins it owns and when it bought them.
“I’m not sure Bitcoin is seen here as just an inflation hedge,” Fitzpatrick said. “I think it has crossed the barrier to the mainstream.”
Fitzpatrick explained how the market value of cryptocurrencies is now over 2 2 trillion, with more than 200 million users.
The price of Bitcoin, the world’s most popular cryptocurrency, rose 10% from about 50,000 50,000 on Tuesday to 55 55,000 on Wednesday. It was trading at 4 54,726 at about 4 a.m. ET on Thursday.
A week ago the price of bitcoin was around 43 43,000, while at the beginning of the year a bitcoin could be bought for around 29 29,000.
The latest bitcoin rally comes despite the constant threat of a global government regulator crackdown and concerns about its massive environmental footprint.
Treasury Secretary Janet Yellen and SEC Chairman Gary Gensler both said they had no plans to impose restrictions on cryptocurrency trading as US regulatory fears eased this week.
Freddie Evans, a sales trader at Globalblock, a UK-based digital asset broker, said in a statement: Wednesday.
“Recent bitcoin advances could lead to a repeat of history after the Chinese ban on crypto activity,” he added.
Bitcoin is not the only cryptocurrency this year. Elsewhere, the price of ether more than tripled from about $ 1,000 a coin at the start of the year, to more than $ 3,000 on Thursday.
According to a Bank of America fund manager survey released in April, most professional investors think Bitcoin is just a bubble.
About 74% of those who responded to the closely watched market gauge said they saw the leading cryptocurrency as a bubble. Only 16% said no to the question, which indicates a highly speculative ground that Bitcoin is looking at.