American multinational hedge fund and financial services company Citadel is set to enter the cryptocurrency markets this year.
Speaking on Bloomberg Wealth with David Rubenstein, Citadel founder Ken Griffin commented on the current state of the markets in light of recent geopolitical disputes, saying they were at a “very volatile inflection point” .
When the interview turned to digital assets, Griffin, who previously warned the younger generation away from them and said “there’s no need for cryptocurrencies,” revealed that the firm would engage in the crypto asset markets this year.
“It’s fair to assume that over the coming months you’ll see us engage in creating markets in cryptocurrencies.”
It’s quite the turnaround in November 2017, when Griffin said, “Bitcoin currently has a lot of the elements of the tulip bulb mania that we saw hundreds of years ago in Holland.” At the time, when BTC was trading around $10,000, he added “those bubbles tend to end in tears. And I worry about how this bubble might end.
During the Bloomberg Wealth interview, Griffin admitted that he was wrong to have been on the “opponent side” when it comes to digital assets. “Crypto has been one of the great stories in finance over the past 15 years,” he said before adding:
“And let me be clear, I have been on the opponents’ side during this period. But the crypto market today has a market capitalization of around $2 trillion in round numbers, which tells you that I wasn’t right on that call.
He said he was still skeptical but “there are hundreds and millions of people in this world today who disagree with this”.
“As we try to help institutions and investors with their portfolio allocation issues, we need to seriously consider being a crypto market maker.”
Citadel analyzes global markets using a range of strategies to deliver leading investment returns to its financial partners. Griffin wants the firm to integrate crypto assets into these strategies over the next few months.
In January, Citadel Securities announced its first outside investment worth $1.15 billion from two prominent crypto venture capital firms Sequoia Capital and Paradigm. Citadel, which currently has approximately $38 billion in assets under management, was valued at $22 billion following the investments.
Related: Citadel Securities receives $1.15 billion investment from Sequoia and Paradigm
As recently as November, Griffin remained highly skeptical of cryptocurrencies, saying at the time that people were focusing on new ideas and he feared “some of that passion is misplaced when it comes to cryptocurrencies”.
The billionaire investor, however, touted the properties of Ethereum, believing that Ethereum-based assets will eventually replace Bitcoin, which has a greater environmental impact.
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Billionaire Admits He Was Wrong About Bitcoin As Citadel Turns To Crypto Markets
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