Citadel Hedge Funds Founder Advice Millennials to Avoid Cryptocurrency Investments
Founder and CEO of Citadel hedge funds Ken Griffin have reiterated his negative stance on Bitcoin in a recent interview with CNBC.
Speaking at the Delivering Alpha Conference in New York, Griffin said that he “still scratch[es] [his] head” about Bitcoin and emphasized that the youth population shouldn’t go into this sphere and “do something more productive than invest in digital currencies.”
To prove his point, he stated: “I don’t have a single portfolio manager [of mine] who has told me we should buy crypto, not a single portfolio manager. I have a hard time finding myself wanting to be in the position of being a liquidity provider to a product that I don’t believe in.”
Citadel’s group of hedge funds rank among the largest and most successful hedge funds in the world. Founded by Griffin in 1990, Citadel is one of the three percent of hedge funds that have operated for more than 20 years. The hedge fund currently manages over $30 billion worth of assets.
Though Griffin declared that his company is experiencing not the best period in its history, he said that it couldn’t be a reason to turn to cryptocurrencies. “There’s no need for cryptocurrencies. They’re a solution in search of a problem.”
The hedge fund billionaire has never shied away from voicing out his negative views of bitcoin. In November last year, Griffin compared the hype around Bitcoin with the tulip bulb mania which occurred hundreds of years ago in Holland.
While he considers blockchain to be a very interesting technology, Griffin said he does not believe that this technology behind cryptocurrencies could be valid.
Over the year, the cryptocurrency market has experienced a significant surge in demand and interest from investors in the public market. 2018 saw the emergence of huge financial firms into the crypto industry including the New York Stock Exchange and the Japanese Financial giants SBI Holdings which recently launched its own crypto exchange.
Most recently, the world’s largest exchange-traded fund provider BlackRock has announced its plans to form a special working group that will investigate the crypto market and estimates the company’s potential involvement in Bitcoin.
Another industry’s giant multinational investment bank Goldman Sachs has also expressed its interest in cryptocurrencies. The bank has appointed a new CEO and now it is expected that the bank will add more bitcoin and other crypto services to its portfolio.