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Billionaire admits he was wrong about Bitcoin as Citadel looks to crypto markets

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Citadel, a multibillion-dollar hedge fund and financial services corporation based in the United States, has announced its intention to enter the cryptocurrency market this year.

Citadel founder Ken Griffin said in an interview with Bloomberg Wealth’s David Rubenstein that markets are at a “highly volatile inflection moment” in light of recent global tensions.

When it came to digital assets, Griffin announced that the firm would be engaging in crypto-asset markets this year. Despite previously telling the younger generation to stay away from them and arguing that “cryptocurrencies are unnecessary.”

“In the months ahead, it’s realistic to anticipate us to engage in cryptocurrency market-making.”

“Bitcoin right now has many of the components of the tulip bulb boom we observed hundreds of years ago in Holland,” Griffin said of Bitcoin in November 2017. He warned at the time, when BTC was trading at $10,000, that “these bubbles tend to end in tears”. I’m also worried about how this bubble will pop.”

In a Bloomberg Wealth interview, Griffin conceded that he was wrong about being in the “naysayer camp” when it comes to digital assets. “Cryptocurrency has been one of the great tales in finance over the last 15 years,” he added, before adding:

“And let me be clear: I was in the naysayer camp the entire time. However, the crypto market today has a market cap of about $2 trillion in round numbers. Suggesting that my estimate was erroneous.”

“There are hundreds of millions of people on this planet today who disagree with that,” he said, expressing his scepticism.

“We’re seeking to assist institutions and investors with portfolio allocation difficulties. Hence, we need to seriously consider being a market maker in crypto.”

Sequoia Capital and Paradigm had invested $1.15 billion in the company

Citadel conducts market research and implements a number of strategies to generate market-leading investment returns to its capital partners. Griffin anticipates that the corporation will incorporate crypto assets into these approaches in the coming months.

In January, Citadel Securities announced that Sequoia Capital and Paradigm, two well-known crypto venture capital firms, had invested $1.15 billion in the company. Following the investments, Citadel valued at $22 billion, with $38 billion in assets under management.

Even as recently as November, Griffin remained sceptical of cryptocurrencies. Saying that people fixated on new ideas and that he is afraid “that some of this enthusiasm is misdirected when it comes to cryptocurrencies.”

The affluent investor, on the other hand, praised Ethereum’s advantages. Anticipating that Ethereum-based assets will eventually replace Bitcoin, which has a bigger environmental impact.

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