On Friday, Ken Griffin, who manages a large Wall Street company spanning market-making practices and a hedge fund, was suspicious of digital currencies, even though others see the new currency as the financial future.
The creator and CEO of Citadel said to CNBC’s Andrew Ross Sorkin on “Squawk Box”, “I just don’t spend much time thinking about cryptocurrencies […] I don’t see the economic underpinning of cryptocurrencies. I understand how to value a stock — the net present value of earnings. I understand how to think about currency exchange rates around the world.”
He also stated that “I don’t know how to think about what is effectively a digital token,”
In previous times, Bitcoin has exploded, driven in part by recognition by large financial firms, traders and businesses, like Tesla. Employees of big Wall Street banks and consumers are now calling for greater interest in digital currencies.
The longest U.S. bank, Bank of New York Mellon, confirmed it would begin funding bitcoin and other virtual money on Feb. 11.
The stock producer that manages about 40 percent of the regular retail trade in the U.S. is Citadel Securities, making it one of the largest financial plumbing firms in the world. A hedge fund called Citadel was also created by Griffin.
As per Coin Metrics, Bitcoin stood above $53,000 on Friday, placing its six-month rise at over 350 percent .
In a conversation about Citadel’s involvement in the GameStop saga, Griffin’s views on digital currencies came up. And during Reddit-fueled market correction on the stock, the company controlled retail transactions from discount brokerage Robinhood, and Griffin testified recently before Congress.
The Citadel hedge fund has invested money in Melvin Capital, one of the funds hit the hardest by the fast expansion of GameStop, in January. Previously, Griffin defended the decision.