Crypto is here to stay, says Soros Fund CEO

Soros Fund Management CEO and CIO Dawn Fitzpatrick says crypto is going nowhere given its already mainstream. 

The Soros’ executive made the comments during an interview with Bloomberg, noting that the entry of major mainstream players like Fidelity Investments was a key development.

In her response on what she thought of crypto in terms of “taking off” or being hindered by government regulation, Fitzpatrick said “it’s here to stay.”

“I think it’s gone mainstream,” she added, noting that “Fidelity just announced you can put it in your 401(k).”

Soros Fund Management is a top investment management firm founded by investor George Soros. The family office confirmed it held some bitcoin in October last year.

On Bitcoin and Ethereum

Regarding the future of the top two cryptocurrencies by market cap today (Bitcoin and Ethereum), Fitzpatrick thinks the smart contracts platform is set to see more traction than Bitcoin. 

According to her, the issue of climate change could be the difference that pushes Ethereum above the pioneer cryptocurrency.

She told Bloomberg:

“The one caveat I would say is, first of all, climate impact is going to become increasingly in focus. So, in that context, I think Ethereum is likely to gain some more traction over Bitcoin.”

Bitcoin is a proof-of-work (PoW) blockchain network that uses a lot of energy to process transactions and maintain network security. Notably, Ethereum is inching closer to fully transitioning from PoW to proof-of-stake (PoS), a network mechanism that’s deemed more eco-friendly. 

Blockchain applications

In other comments, Fitzpatrick noted that so many companies entering the crypto and blockchain space hold “massive Treasury accounts” with loads of different coins, which she thinks could expose them to near term vulnerability.

“But that said, I think blockchain technology is going to have some great applications and crypto is here – today,” she concluded.

Fitzpatrick’s comments come at a time when crypto is battling a bear market that has seen Bitcoin and Ethereum lose over half of their market value. However, industry figures continue to bet on the sector’s future, noting that a ‘crypto winter’ is the best time to build.

Recently, venture fund Andreessen Horowitz announced plans to invest billions in projects within the crypto and Web3 space.

But Terra (LUNA)’s debacle, including the collapse of its algorithmic stablecoin TerraUSD (UST), has the regulatory antennae firmly fixed on the sector.