- The agency is working with Virtu Monetary to construct its crypto platform.
- It goals to create extra environment friendly entry to crypto liquidity for institutional traders.
- CEO Ken Griffin has reversed his pessimistic outlook on the asset class.
The American market-making agency based by billionaire hedge fund supervisor Ken Griffin is constructing a cryptocurrency buying and selling platform in collaboration with high-frequency buying and selling agency Virtu Monetary.
Citadel Securities is the sister firm to hedge fund big Citadel. Additionally it is working with crypto enterprise capital corporations Sequoia Capital and Paradigm, based on reports citing unnamed sources on June 8. Sequoia and Paradigm participated in Citadel Securities’ $1.15 billion funding spherical earlier this yr.
The brand new “cryptocurrency buying and selling ecosystem” can be designed to create extra environment friendly entry to crypto asset liquidity for institutional merchants. The agency seems to be unfazed by the deepening bear market within the crypto sector, which has seen whole market capitalization decline by nearly 60% since November 2021.
No Concern of The Bears
There was outstanding curiosity within the asset class from monetary establishments over the last bull market. They often plan for longer-term returns, so are unlikely to be deterred by the present crypto market situations, which have occurred a number of instances earlier than. If something, bear markets enable for extra vital alternatives for income if investing in property at depressed costs.
In accordance with the supply, who spoke to Coindesk, the Citadel consortium can be joined by further wealth managers, market makers, and business leaders anticipated to be a part of the platform forward of launch. They didn’t specify a timeframe for the launch, nonetheless.
The supply added that the present crypto market construction is “poor and inhibits wider adoption from a number of traders” earlier than persevering with to clarify:
“It’s extra of a crypto buying and selling ecosystem or market than an change. It’s going to tackle the exchanges by constructing a greater mousetrap.”
The agency has additionally been hiring executives to construct out the crypto stack on the quiet.
Virtu Monetary is a market maker for crypto derivatives merchandise and exchange-traded funds (ETFs) in Canada. In accordance with experiences, it additionally works carefully with the Coinbase and Gemini exchanges.
Billionaire U-turns on Crypto
Griffin in contrast Bitcoin to Tulip Bulb mania in 2017 when the asset was buying and selling at round $10,000. Nonetheless, the billionaire has made a U-turn on his stance towards crypto assets, lately telling Bloomberg in March that he made the improper name by being a naysayer. On the time, he said:
“Crypto has been one of many nice, nice tales in finance over the course of roughly the final 15 years and, I’ll be clear, I’ve been within the naysayer camp over that 15-year interval,”
In November 2021, Griffin touted the properties of Ethereum (ETH), postulating that property based mostly on the community would finally exchange Bitcoin (BTC) as a consequence of increased transaction speeds, decrease prices, and a a lot decrease environmental influence.