George Soros and Rockefellers Enter Crypto World

Funds of Soros and Rockefellers plan cryptocurrency trading and Blockchain investments

by Marin Marinov
06 April • 2.5 min
In News

Two of the biggest investment funds globally, Soros Fund Management and Rockefellers` Venrock, have started preparations for entering the crypto world, several US media outlets reported on Friday. The Hungarian-born billionaire is set to start digital coin trading, while one of the wealthiest families in the world has signed a partnership for backing blockchain companies.

Soros and crypto

The head of macro investing at Soros Fund Management, Adam Fisher, has recently got internal approval to trade cryptocurrencies, unnamed sources told Bloomberg. Fisher has not yet made a wager.

This development is in contrast to earlier Soros statements on digital coins. Speaking at the World Economic Forum in Davos in January, the magnate called cryptocurrencies a “typical bubble” that is used mostly for tax evasion and for backing of dictators. However, he highlighted the positive side of the virtual currencies’ technology, the blockchain:

“But the blockchain technology can be put to positive use and we use it actually in helping migrants to communicate with their families and to keep their money safe and carry it with themselves,” Soros noted. The billionaire did not specify whether he uses his non-governmental organization Open Society Foundation or the hedge fund for investing in crypto technology.

Soros Fund Management was launched in 1969 and it has invested in many projects since then. Recently, the hedge fund backed the Argentine smartphone financial service provider Uala and Behalf, which offers credit on demand to US-based small businesses. Last year, Soros Fund Management bought a stake in Overstock, the US-based online retailer that raised more than USD 100 million in an initial coin offering (ICO) earlier this year.

The Rockefellers family

Separately on Friday, it became public that the Rockefellers` family fund has signed a strategic partnership with US cryptocurrency investment group CoinFund. The aim of the cooperation is to support new businesses based on blockchain technology. David Pakman, a Venrock partner, is not concerned about the recent volatility of digital coins such as Bitcoin (BTC) because the venture fund’s investments are with long-term strategy.

“We wanted to partner with [CoinFund] team that has been making investments and helping to architect a number of different crypto-economies and crypto token-based projects,” Pakman said.

Venrock was launched in 1964 by Laurance Rockefeller, the fourth child of John D. Rockefeller. Currently, it consists of eight funds and has invested in many technological and pharmaceutical companies such as Apple and Intel, or Aveo and Infinity.

Cryptocurrency and blockchain

Many big investors have a positive view of blockchain technology and a negative outlook towards digital currencies. Jamie Dimon, J.P. Morgan CEO, has described bitcoin as a “fraud” and ruled out the possibility to invest in cryptocurrencies while underlying the blockchain capability to make banking operations more efficient.

But not everybody thinks that way. Another wealthy family, The Rothschilds, purchased their first ever BTC exposure via the Grayscale Bitcoin Trust in December 2017.