Home Business Ken Griffin says he does not see 'financial underpinning' of cryptocurrencies

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

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

David A. Grogan | CNBC

Ken Griffin, who runs a sprawling Wall Road empire that features market making operations and a hedge fund, was dismissive of cryptocurrencies whilst some see the rising asset as the way forward for finance.

“I simply do not spend a lot time fascinated by cryptocurrencies … I do not see the financial underpinning of cryptocurrencies. I perceive the right way to worth a inventory — the web current worth of earnings — I perceive how to consider foreign money change charges all over the world,” 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 latest months, boosted partially by adoption from main monetary establishments, buyers 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 each day retail buying and selling in america, making it one of many greatest firms 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 throughout the Reddit-fueled brief 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.

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