Citadel Securities, managing $65B in assets, considers entering cryptocurrency trading, initially outside the US, after Ken Griffin admitted being wrong about crypto.
Citadel Securities, a prominent firm managing $65 billion in assets, is reportedly exploring the possibility of entering the cryptocurrency trading market, according to Bloomberg.
The Miami-based company intends to become a market maker for several major cryptocurrency exchanges, including Coinbase. The initial strategy involves testing the market outside the United States, while closely monitoring regulatory developments within the country.
James Lavish, a former hedge fund manager, emphasized the importance of this potential move, urging market participants to focus on the significance of Citadel’s interest in the crypto space.
“With over $60 billion of assets and one of the 10 largest hedge funds in the world, Citadel is now looking to make markets in Bitcoin and crypto. Do not let the noise drown out the signal. This is signal,” he stated on social media.
Ken Griffin’s Evolving Views on Crypto
Ken Griffin, Citadel’s founder, initially held a skeptical view of Bitcoin, similar to many other financial leaders. In 2017, he described it as a “tulip bulb mania” during a CNBC interview, echoing a common criticism at the time. He also mentioned that he didn’t spend much time considering crypto assets.
However, Griffin later acknowledged that he was wrong about crypto in 2022, as reported by U.Today. He had previously expressed difficulty in understanding the economic foundations of cryptocurrencies.
In December, he admitted that it was a mistake not to have entered the crypto market sooner. He also spoke positively about crypto, highlighting its potential to empower individuals.
Background on Citadel Securities
Citadel Securities is a leading global market maker, providing liquidity across a wide range of financial products. The firm’s potential entry into cryptocurrency trading could have a significant impact on the market, given its substantial resources and expertise.
Potential Impact on the Cryptocurrency Market
Citadel’s move into cryptocurrency market-making could lead to increased liquidity and tighter spreads, potentially benefiting both retail and institutional investors. The firm’s presence could also attract more institutional participation in the crypto market, further legitimizing the asset class.
Regulatory Considerations
Citadel’s cautious approach to entering the US market reflects the ongoing regulatory uncertainty surrounding cryptocurrencies. Clearer regulatory guidelines are needed to provide greater clarity and encourage further institutional investment in the crypto space.
Sources: https://www.bloomberg.com/news/articles/2025-02-24/crypto-citadel-securities-plans-to-trade-digital-coins-on-exchanges
https://u.today/64-billion-hedge-fund-to-offer-crypto-trading
https://www.theblock.co/post/343075/ken-griffin-says-citadel-could-enter-as-market-maker-on-exchanges-like-coinbase-pushes-trump-for-regulatory-clarity