Kenneth Griffin, founder of Chicago-based hedge fund Citadel, has openly admitted being wrong about his early perception of the cryptocurrency market. Griffin’s Citadel boasts over $39 billion in assets under management, but has largely stayed away from the cryptocurrency market until now.
Back in February 2021, the hedge fund founder said he didn’t “see the economic underpinning of cryptocurrencies.” He also noted in an October interview that he was critical of the amount of time and resources being devoted to cryptocurrencies.
However, in a Bloomberg interview published today, Kenneth Griffin appeared to have completely changed perspective on crypto assets, even admitting that he had been wrong on the call. He said:
I’ve been in the naysayer camp…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.”
Regarding when Citadel could get involved with cryptocurrencies, Kenneth Griffin added, “It’s fair to assume that over the months to come, you will see us engage in making markets in cryptocurrencies.” Citadel Securities, the market-making arm of Citadel’s business, notably handles 40% of the daily retail trading volume in the United States.
The firm’s involvement will undoubtedly further legitimize an industry that in recent times has attracted some of the biggest names in the U.S. hedge fund world, including Paul Tudor Jones and Stanley Druckenmiller.
Crypto Markets Rebound Amid Global Crisis
The $2 trillion cryptocurrency market is once again catching the eye amid an ongoing global crisis that onlookers feel has demonstrated the benefits of self-sovereign assets like Bitcoin. Following a broader market decline that marked Russia’s invasion of Ukraine, the crypto market has witnessed a massive rally in the past few days.
Cryptocurrencies are actively being used to fund Ukrainian war efforts, and are also being touted as a possible evasion tool for sanctioned regimes like Russia and Belarus. The market seems to be catching up with the global spotlight on crypto assets and only time will tell whether the current momentum is maintained.
