As the market for digital currencies matures, a series of financial magnates (some of them formerly crypto-skeptics such as George Soros and the Rockefeller family) have begun to position themselves in this burgeoning asset class.
This is, of course, the same George Soros who, back in January during a speech at the World Economic Forum in Davos, said that cryptocurrencies were a bubble. Earlier this week, however, Bloomberg announced that the Soros Fund Management, valued at 26 billion USD, intends to operate with digital assets.
The venture capital branch of the Rockefeller family , Venrock, is taking a different direction. Venrock has partnered with CoinFund to help entrepreneurs launch blockchain-based businesses. Earlier this month, David Pakman, partner of Venrock, said in a statement to Fortune : “We wanted to collaborate with this team that has been making investments and helping to build a series of cryptoeconomies and projects based on cryptocurrencies.”
These new participants have not gone unnoticed for the crypto community. Charles Hoskinson, CEO of Cardano tweeted: “Rockefeller, Soros and Rothschild’s money has entered the space of cryptocurrencies … it sounds as if the regulation is not so strict anymore”.
Rockefeller, Soros, and Rothschild money entering the cryptocurrency space….it sounds like regulations might be getting a bit more lax
It should be noted that although Hoskinson is right about the Rockefeller and Soros families, the “Rothschild money” he refers to is actually a stake in Bitcoin Investment Trust (OTC: GBTC ), adopted by the Rothschild Investment Corporation in 2017, which sparked the market enthusiasm until it became clear that the firm had no relationship with the Rothschild family.
Could Warren Buffet be the next to get on the crypto-currency car? In January he said he believed that “they will not have a good ending”, but at the time Soros was not a big fan either.
More and more traditional institutional investors are aiming at the cryptocurrency fashion, what could that mean for the asset? Many would like prices to go back to the intoxicating numbers of the end of 2017. At the moment, however, the most popular virtual currencies such as bitcoin , etereum or ripple have stalled. In fact, the exceptional day BTC currently quotes at less than 7,000 USD, the ethereum is just above 400 USD and the ripple is a bit below 0.51 at the time of writing these lines.
BTC / USD weekly
David Siegel, CEO and founder of The Pillar Project, explains that we are still going through a period of regulatory uncertainty in the United States and Europe. He believes that it will be resolved or in favor of free markets or in favor of regulators “implementing restrictions” and placing cryptoactives in boxes that regulators, and therefore investors, know well.
“If the regulators determine that they are going to let the market solve it, the previous investors will come back and once again we will go the way of the trillion USD in cryptoactives.” If, on the other hand, the regulators manage to regulate the majority of cryptoactives under regulatory frameworks Current, then I think that many institutional investors such as Soros, pension funds, large hedge funds and others will begin to enter the market, causing a flood of thousands of billions of dollars.
Gabriele Giancola, co-founder and CEO of qiibee, adds that financiers such as Rockefeller and Soros are important names for the legacy. Their participation in cryptospace is a good thing, because it indicates the confidence of small investors in this asset class. They would not get their hands dirty if they did not believe that there is a huge amount of money to earn in this environment.
John Frazer, co-founder and communications director of the DAV Foundation , a blockchain transport platform, assures that these actors have no doubt been observing cryptospace for a few years, looking for the right moment to enter. And adds:
“Elegant and respected institutional investors” are recognizing that now is a great time to enter the market and buy, says Mick Hagen, CEO and founder of Mainframe, a messaging platform for the new website. He believes that this is a good thing in general, because there is more and more institutional capital exposed to the blockchain technology that could in turn drive more innovation, attracting even more funds.
It is clear that the more traditional ones like Soros, who have been publicly detractors of digital currencies, are backing down now, says Darvin Kurniawan, co-founder and CEO of Crowdvilla . His theory: it takes a lot of effort to try to maintain relevance in a versatile financial world.
But why this sudden interest? Kurniawan believes that the cryptocurrency market can be attractive to large investors like Soros who expect to make a profit, but it is much more than that: it is an opportunity to invest in an economy of the future that is inclusive, fair and valued by the community.
“The entry of great actors like Soros into cryptospace is a vindication for the members of the community that we have believed for years in the potential transforming of digital assets, it is clear that these headlines are finally catching up, the great potential of cryptocurrencies it can no longer be ignored. “
Some believe that this change is a sign that now is the best time to enter this market.Noel Chandler, co-founder and CEO of Clinicoin , believes that this is why Soros has suddenly changed his position. “What this supposes for the crypto market in general is simply a greater validity for the big traditional actors, providing more evidence that the cryptocurrencies have come to stay,” he adds.