As the crypto industry stands at the cusp of a regulatory reckoning, Ken Griffin's Citadel Securities and George Soros' investment fund reported crypto-related bets during the last three months of 2022. The timing is curious given FTX's November collapse, but there is no way to determine if these bets were made before or after the crypto-exchange failed.
Key Takeaways
- Both Citadel Securities and Soros Fund Management reported crypto-related investments in Q4 2022.
- Citadel owns a 5.5% stake in Silvergate Bank, while Soros Fund Management made multiple purchases, including Marathon Digital, MicroStrategy, and Silvergate Bank.
- The investments come at a time when the crypto market is rocky, and regulators are taking stern action against companies that don’t comply with the law.
- The SEC has fined many crypto lenders, including Nexo and BlockFi.
Citadel and Soros Fund Invests in Crypto Space
According to Form 13F filings with the U.S. Securities and Exchange Commission (SEC), both Citadel and Soros Fund Management made crypto-related bets last quarter, but there is no way to determine whether they continue to hold those positions.
Citadel reported a 5.5% stake, including options bets, in Silvergate Capital (SI), a well-known crypto lender. The lender is actually under investigation by the United States Department of Justice (DOJ), while one lawsuit alleges that the bank “aided and abetted” FTX and Sam Bankman-Fried.
Soros Fund Management reported purchasing nearly 40 million in convertible debentures from Marathon Digital (MARA), a crypto mining company. It also purchased put options for Silvergate Capital. Another indirect crypto-exposure reported by the Soros fund was into software firm MicroStrategy (MSTR) where it invested in debt as well as purchased 50,000 call and put options. According to its SEC filings, MicroStartegy owned about 132,500 bitcoins worth a little more than $4 billion as of December 2022.
Soros' fund also reported acquiring call options in Cathie Wood's ARK Innovation ETF which also has crypto-related holdings including Coinbase.
Crypto Regulation Picking Up in the United States
To be sure, it is not clear whether these bets were made before FTX's collapse triggered a call for more stringent regulations for the crypto markets in the U.S. In recent weeks, lawmakers and regulators have upped the ante on crypto regulations, often courting controversy.
Crypto platform Kraken agreed to a $30 million settlement with the SEC and shuttered its U.S. staking-as-a-service business. The New York Department of Financial Services (NYDFS) took regulatory action against Paxos over issuing Binance USD stablecoin.
The crux of the matter is whether cryptocurrencies are securities and under the jurisdiction of the SEC. A key development in that debate would be the outcome of the Ripple vs. SEC lawsuit.
Even though the crypto market is at a bit of a crossroads, some major players in the world of finance appear keen on placing their bets. Crypto could yet see more growth from institutional investments, which could help pull the market out of its slump.
FAQs
George Soros' Family Office Owns Bitcoin
Billionaire investor George Soros' family office, Soros Fund Management, has invested in bitcoin but clarified “the coins themselves are less interesting than the use cases of...
Does Citadel invest in crypto? ›
Citadel Securities, Charles Schwab and Fidelity Digital Assets are among the names behind the launch of EDX Markets, a new crypto exchange for institutional investors. Julius Baer, the Swiss private bank with $478 billion in assets, is plotting to expand its crypto services for Dubai's wealthy elite.
What crypto exchange is backed by Citadel Securities Fidelity? ›
EDX Markets is an institutional cryptocurrency exchange backed by Citadel Securities, Fidelity Digital Assets, Charles Schwab Corporation, Virtu Financial and Sequoia among others. The exchange offers trading in Bitcoin, Ethereum, and Litecoin.
What does Soros Fund Management invest in? ›
The company invests in public equity and fixed income markets worldwide, as well as foreign exchange, currency, and commodity markets, and private equity and venture capital funds. The company is reported to have significant investments in transportation, energy, retail, financial, and other industries.
What crypto does Soros own? ›
The Soros Fund has previously been reported to own bitcoin, during the bull run of 2021.
Does Bill Gates own crypto? ›
The market value of the entire crypto sector has fallen to less than $1 trillion from about $3 trillion in November, according to CoinMarketCap. Last month, Gates told readers on an “Ask Me Anything” Reddit event that he doesn't own cryptocurrency because he “likes investing in things that have “valuable output.”
What is Citadel investing in? ›
Citadel is a multinational hedge fund with an AUM of >$250B. The firm employs a variety of investment strategies across equities, fixed-income, commodities, credit, and quantitative trading.
Who owns Citadel fund? ›
Ken Griffin founded and runs Citadel, a Miami-based hedge fund firm that manages $59 billion in assets.
Who owns Citadel trading? ›
Citadel Securities is a separate entity from the hedge fund Citadel LLC, although both were founded and are majority owned by American hedge fund manager Kenneth C. Griffin.
Is Citadel Securities a dark pool? ›
One of the most prominent dark pools is run by Citadel Securities, owned by Chicago billionaire Ken Griffin. Dark pools typically pay brokerage firms for the order flow they receive.
Citadel (CTL) is a cryptocurrency . Users are able to generate CTL through the process of mining. Citadel has a current circulating supply of around 12,300,000.
How good is Citadel Securities? ›
NEW YORK (S&P Global Ratings) Dec. 15, 2021-- S... Citadel Securities L.P. is a leading market-maker in equities, options, and fixed income securities worldwide with superior profitability and geographic diversification versus peers and strong capitalization.
Where did George Soros get his wealth? ›
How Did George Soros Make His Money? George Soros founded his first hedge fund, Double Eagle, in 1969. With profits from this fund, he started Soros Fund Management, in 1973. 4 Eventually, Double Eagle was renamed the Quantum Fund, and it became the primary hedge fund that Soros advised.
How is George Soros wealthy? ›
Soros is the founder of Soros Fund Management, a family office with about $25 billion in assets under management. The billionaire returned money to his outside investors in 2011 and changed his hedge fund into a family office. The business also handles the multi billion-dollar endowments of his philanthropic ventures.
Does George Soros own Soros Fund Management? ›
George Soros is one of the most successful investors in history. His Soros Fund Management currently manages $7.6 billion in assets, and Soros himself has an estimated net worth of $6.7 billion after donating more than $32 billion to philanthropic causes.
Which government owns the most crypto? ›
The U.S. government is one of the world's biggest holders of bitcoin, but unlike other crypto whales, it doesn't care if the digital currency goes up or down in value. That is because Uncle Sam's stash of some 200,000 bitcoin was seized from cybercriminals and darknet markets.
Who owns George Soros Bitcoin? ›
The family office owns “some coins … but not a lot,” Dawn Fitzpatrick, CEO and chief investment officer of Soros Fund Management, said in an interview at a Bloomberg event this week.
Which president bought crypto? ›
BERLIN, El Salvador, Feb 2 (Reuters) - James and Nicki Malcolm moved to El Salvador from New Zealand to be part of a bitcoin dream sold by President Nayib Bukele in 2021 when he made the Central American nation the first in the world to accept the cryptocurrency as legal tender.
