Ken Griffin says he would not see ‘financial underpinning’ of cryptocurrencies

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Ken Griffin talking on the 2018 Delivering Alpha Convention in New York on July 18th, 2018.

David A. Grogan | CNBC

Citadel CEO Ken Griffin mentioned Friday that he would not spend a lot time enthusiastic about bitcoin or different cryptocurrencies.

“I simply do not spend a lot time enthusiastic about cryptocurrencies … I do not see the financial underpinning of cryptocurrencies. I perceive learn how to worth a inventory — the online current worth of earnings — I perceive how to consider forex alternate charges world wide,” Griffin mentioned to Andrew Ross Sorkin on CNBC’s “Squawk Box.” “I do not know the way to consider what’s successfully a digital token.”

Bitcoin has soared in current months, boosted partly by adoption from main monetary establishments, traders and firms, together with Tesla. Employees and customers of major Wall Street banks are additionally pushing for better involvement in cryptocurrencies.

Citadel’s market making arm handles about 40% of the every day retail buying and selling in america, making it one of many largest corporations concerned within the nation’s monetary plumbing. The agency additionally operates a hedge fund.

Bitcoin was buying and selling above $52,000 per coin on Friday, in accordance with Coin Metrics, placing its six-month achieve at greater than 330%.

Griffin’s feedback got here as a part of an interview regarding Citadel’s role in the GameStop saga. The agency dealt with retail trades from low cost brokerage Robinhood in the course of the Reddit-fueled quick squeeze on the inventory, and Griffin testified earlier than Congress on Thursday.

Citadel’s hedge fund arm additionally made an funding in January in Melvin Capital, one of many hedge funds hit hardest by GameStop’s speedy rise. Griffin defended that decision on Friday.