Forex in this article
Citadel CEO Griffin admits misconception about cryptocurrencies
The largest market marker in the USA wants to enter the crypto sector
Griffin announces first crypto investments
Kenneth Griffin is ranked the third-richest hedge fund manager in the world on the Forbes 2021 list with an estimated fortune of $16 billion, behind only legendary investors Jim Simons ($25 billion) and Ray Dalio ($20 billion). Dollar). Griffin’s hedge fund Citadel LLC has over $38 billion in assets under management and is by far the largest market maker in the United States through its Citadel Securities division. Given his fund’s high impact, the about-face Griffin is now demonstrating is momentous for the crypto market.
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Griffin takes back crypto criticism
In recent years, Griffin had been noticed by sharp criticism of cryptocurrencies. In 2017, for example, he compared Bitcoin to the Dutch tulip craze of the 1630s, where wild speculation saw tulip prices multiply within a matter of months before panicking in February 1637. Griffin elaborated, “These blisters usually end in tears. And I worry about how this blister might end.” Just a few months ago, in October 2021, Griffin took it one step further, denouncing Bitcoin supporters as “jihadists” who should rather invest their passion and energy in the US dollar. A few days ago, however, the big surprise followed: the hedge fund manager admitted that he was wrong. “Cryptocurrencies have been one of the big success stories in finance over the past 15 years,” Griffin said on the Bloomberg talk show “Bloomberg Wealth with David Rubenstein.” He now described the growth of the crypto universe as “extraordinary” – an unexpected change of heart that drew a lot of attention from crypto enthusiasts.
Griffin Announces Commitment to Cryptocurrencies
Certainly, Griffin’s change of direction is probably due in no small part to the fact that trading in cryptocurrencies offers great profit potential for his hedge fund. The Citadel Securities division, through which up to forty percent of American trading volume is traded by small investors, is also located under the umbrella of Griffin’s funds. As a market maker, Citadel Securities ensures there is sufficient liquidity on the market, which in turn enables the time-efficient meeting of supply and demand. So far, Citadel Securities’ market-making activities have been limited mainly to equities and derivatives – Griffin has so far categorically ruled out any involvement in cryptocurrencies. However, because more and more investors are interested in crypto investments, Citadel Securities is now seriously considering entering crypto businesses: “It can be assumed that we will become involved in market making of crypto currencies,” Griffin announced to Bloomberg. Additionally, in January, Griffin announced Citadel’s $1.15 billion investment in crypto venture capital firms, Sequoia Capital and Paradigm. Griffin is particularly bullish on Ethereum, as Ethereum is said to be more environmentally friendly than Bitcoin.
Several previous crypto skeptics are now bullish
By the way, Griffin is not the only influential investor who has changed his mind about the crypto world and switched to the bull camp. Another famous name is Jordan Belfort, who may be familiar to many investors from the Hollywood film The Wolf of Wall Street (2013). While initially believing cryptocurrencies to be ridiculous hype, Belfort recently predicted a Bitcoin price spike to $100,000. Belfort expressly praised the advantages of blockchain technology. Other investors, such as Charlie Munger in particular, make no secret of their aversion to Bitcoin and Co. – the crypto universe is therefore still a highly polarizing topic on the international financial markets fourteen years after its creation.
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