Citadel To Become Market Maker In Bitcoin & Crypto MarketsMarch 7, 2022 2:54 pm
The founder of Citadel Securities, Ken Griffin, recently announced that he may have been wrong about about crypto and Bitcoin all along.
Griffin has been known as a long time critic of cryptocurrencies with him previously referring to the industry as “a tulip bulb mania” with no sound fundamentals.
In recent times, however, it seems that the tune has changed as Citadel will now be entering the crypto space to make markets.
Griffin has mentioned that the crypto market being able to achieve a total market capitalization of around $2 trillion has proven that his previous call may have been incorrect.
Billionaire Ken Griffin Admits He Was Wrong About Bitcoin, Crypto
The Founder and CEO of Citadel LLC – Ken Griffin – has been among the biggest critic of the cryptocurrency industry in the past few years. However, in his most recent appearance, he admitted being wrong #bitcoin pic.twitter.com/9LIIV7StPW
— Coin Retweets (@coin_retweets) March 4, 2022
The billionaire executive has long been a bitcoin skeptic. He previously described the rush to embrace cryptocurrencies as a “jihadist call” against the U.S. dollar.
In 2017, he told CNBC that bitcoin has “many of the elements of the tulip bulb mania.” He also said: “I get very worried that people that are buying bitcoins don’t really understand what they’re participating in.”
Griffin made headlines in November last year when he bought a rare copy of the U.S. Constitution at a Sotheby’s auction for $43.2 million, beating out ConstitutionDAO.
He was asked whether Citadel has plans to trade or make markets in crypto. “To the extent that we’re trying to help institutions and investors solve their portfolio allocation problems, we have to give serious consideration to being a market maker in crypto,” he replied, elaborating:
It’s fair to assume that over the months to come, you will see us engage in making markets in cryptocurrencies.
Citadel is known today as one of the largest hedge funds in the world with a total of $38 billion in assets under management.
The firm deals in multiple markets such as stocks, options, and a variety of other traditional financial markets with the firm having a particular focus on US markets.
The company has now recognized that crypto has so far stood the test of time for the past 15 years and has proven many skeptics wrong.
As a result, it has concluded that it would be a missed opportunity to not get involved with the crypto market and using it to help solve portfolio allocation problems for its clients.
Market analysts are expecting the hedge fund to start market making activities within the crypto markets within the upcoming months which may entice other major hedge funds to do the same.
Ken Griffin CEO at Citadel changes his mind about Bitcoin. If your not in crypto you not too late. Things are moving.. @kadena_io #kda @cameronbright #cryptotrading #cryptocurrencies @KadenaCommunity pic.twitter.com/KYmRKUJN7e
— KadenaArmy.kda⛓🕸 (@KadenaArmy) March 6, 2022
“And I’ll be clear, I’ve been in the naysayer camp over that period of time. But the crypto market today has a market capitalization of about $2 trillion in round numbers, which tells you that I haven’t been right on this call,” he continued.
Last fall, Griffin told the Economic Club of Chicago that regulatory uncertainty was keeping the market-making firm out of the crypto space.
In this week’s published remarks, Griffin conceded that “I still have my skepticism” but went on to say that “there are hundreds and millions of people in this world today who disagree with that.”
Institutional market maker involvement in the markets will accelerate the growth of the markets and provide greater liquidity to traders and investors.
This recent news comes during a time where geo-political conflicts have put a spotlight on crypto’s use cases as an alternative global decentralized financial network.
Citadel Plans to Start Making Markets in Crypto in Coming Months, Says CEO Ken Griffin – Featured Bitcoin News https://t.co/YNjRmG8gEP
— Liapng Business (@LiapngB) March 5, 2022
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