/Ken Griffin says he doesn’t see ‘economic underpinning’ of cryptocurrencies
Ken Griffin says he doesn't see 'economic underpinning' of cryptocurrencies

Ken Griffin says he doesn’t see ‘economic underpinning’ of cryptocurrencies

Ken Griffin speaking at the 2018 Delivering Alpha Conference in New York on July 18th, 2018.

David A. Grogan | CNBC

Citadel CEO Ken Griffin said Friday that he doesn’t spend much time thinking about bitcoin or other cryptocurrencies.

“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,” Griffin said to Andrew Ross Sorkin on CNBC’s “Squawk Box.” “I don’t know how to think about what is effectively a digital token.”

Bitcoin has soared in recent months, boosted in part by adoption from major financial institutions, investors and companies, including Tesla.

Citadel’s market making arm handles about 40% of the daily retail trading in the United States, making it one of the biggest companies involved in the nation’s financial plumbing. The firm also operates a hedge fund.