Citadel hedge fund founder Ken Griffin has admitted that he was wrong about bitcoin. He also revealed that Citadel Securities would look into investing in crypto in the months to come.
American hedge fund manager and billionaire Ken Griffin, who has long been a critic of bitcoin and cryptocurrencies, has finally changed his stance. Griffin offered effusive praise on the asset class in a Bloomberg interview, saying that it is one of the great stories in finance over the course of the last 15 years.
Griffin is the founder of Citadel Securities, the largest market maker in the U.S., and was involved in the Robinhood-Gamestop incident. He plainly admitted that he was a critic of the asset class during that time and that he has finally come around. He is also known for outbidding a crypto-funded venture to purchase a copy of the United States Constitution.
What should be most interesting to market enthusiasts is the fact that Griffin confirmed that the firm would consider making markets in cryptocurrencies in the months to come. The firm plans to give “serious consideration to being a market maker in crypto” and could bring a sizable boost to the market.
He is one of many incumbent market stalwarts who have changed their opinion on bitcoin and crypto in the past few years. Michael Saylor is another such prominent individual and has become one of the market’s most prominent flag bearers.
Will crypto acceptance lead to better regulation?
Crypto has been increasingly welcomed by the incumbent financial community over recent years. This has led to more positive sentiment about the asset class and optimism about its future. Bitcoin proponent Anthony Pompliano referred to this wave of new investors in a tweet, saying they all capitulate eventually.
The surge in capital from institutional investors and traditionally crypto-skeptical entities has the market buoyed. However, regulation hasn’t necessarily kept up with it. In order to make the most grounds, crypto will need regulation to entice investors in traditional markets.
There is something of a positive feedback loop here, though. As more incumbents join, the need for regulation becomes more apparent for authorities like the SEC. And as more regulation is formed, more investors feel comfortable putting their capital in.
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