Key Takeaways:
- Alexander Soros took the company over from his father and might want to take a closer look at Bitcoin investments.
- The digital asset will likely benefit from the SEC FUD.
- The on-chain metrics say whales are accumulating.
YEREVAN (CoinChapter.com) – On June 12, multibillionaire philanthropist George Soros handed control over Soros Fund Management to his son, 37-year-old Alexander Soros.
The crypto community watches closely to see if Junior Soros would pay more attention to the digital assets sector, particularly Bitcoin. Here are three reasons he should.
#1 Bitcoin will benefit from the SEC crackdown
In the current regulatory mess, Bitcoin is among the only cryptocurrencies with “immunity” from the SEC allegations. Most large market-cap altcoins have been affected by the Binance lawsuit, which means delistings from centralized exchanges are likely in the books.
If so, investors could flee CEXs en masse, which leaves them with a choice: either exchange their altcoins for Bitcoin or use stablecoins as a mediator between crypto and fiat. As of June 12, Bitcoin (BTC) traded at approximately $25,800 in the European session after a 3% weekly correction down.
Also read: Are Bitcoin and Tether Biggest Beneficiaries of Binance-SEC FUD?
If Alexander Soros does not take the chance now, he might miss out on the opportunity to buy an undervalued asset.
#2 Senior Soros has already dabbed in the crypto sector
True, George Soros once described Bitcoin as a “typical bubble,” comparing it to the ‘tulip mania’ that engulfed The Netherlands in the mid-1600s and expressing worries about its volatility.
His views have not necessarily changed, but his portfolio did.
The veteran investor did not pass up on the chance to diversify his holdings with crypto. Soros Fund Management CIO Dawn Fitzpatrick first greenlighted Bitcoin trading in 2021. The Fund joined a $200 million fundraising round for a Bitcoin financial technology business New York Digital Investment Group (NYDIG)
Then, in February 2023, according to an SEC filing, Soros Fund added to positions in crypto-related companies, such as crypto miner Marathon Digital (MARA), MicroStrategy (MSTR), and Silvergate Bank.
In detail, Soros Fund Management purchased $39.6 million worth of Marathon convertible debentures. Convertible debentures are types of long-term debt issued by a company that can be converted into stock after a specified period of time.
Also, the Fund owns “call” options and “put” options on 50,000 shares of MicroStrategy stock, worth roughly $14.5 million. In addition to those common stock bets, the fund held nearly $200 million in MicroStrategy preferred shares.
#3 All the other kids are doing it!
Bitcoin whales have been on the move, collecting BTC in bulk. Based on data from crypto intelligence tracker Santiment, they picked up the pace of their accumulation on May 24.
Additionally, the crypto analytical platform CryptoQuant showed that BTC exchange reserves shrunk from 2.22 million coins in early May to 2.14 million on June 12. In detail, the declining BTC exchange reserves testify to the investors’ intention to hold on to their coins rather than exchange them.
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