One of the world’s largest asset managers, Citadel Securities, is making a significant move into crypto trading and liquidity provision.
Citadel, which manages approximately $64 billion in assets, is reportedly working to become a market maker for major exchanges such as Coinbase, Binance, and Crypto.com. This is a crucial development for the firm, which has historically been hesitant to engage with digital assets.
From Crypto Skepticism to Market Integration
Citadel plans to set up trading operations outside the U.S. first, likely as a hedge against ongoing regulatory uncertainty.
However, the firm’s entry aligns with the broader wave of institutional adoption, a trend accelerated by the pro-crypto stance of the Trump administration, which has positioned digital assets as a key part of its economic vision.
Not everyone in the industry is particularly happy about the news, however, with X crypto trader Will stating that it’s “the end for easy mode”.
Citadel entering the arena is confirmation of the end of being early & easy mode for trading/investing in crypto.
— Will (@WClementeIII) February 24, 2025
Citadel’s pivot to crypto is particularly striking given CEO Ken Griffin’s past skepticism. In 2017, Griffin famously dismissed Bitcoin as a “jihadist call against the dollar,” and the firm was among the firms that actively lobbied against the approval of Bitcoin ETFs.
But shifting market dynamics and evolving regulations appear to have changed the firm’s stance. A key driver is the growing institutional demand, as hedge funds and pension funds increasingly seek exposure to digital assets.
Lastly, Citadel’s strength lies in market-making, and the inherent volatility of crypto provides lucrative opportunities, as the firm thrives in markets where spreads and inefficiencies present profitable trading conditions.
Read more: Crypto Market Sees $685M Liquidations as BTC and ETH Face Heavy Selling Pressure
Why Is Citadel’s Move Significant?
Market makers play a critical role in financial markets by providing liquidity, reducing spreads, and improving price efficiency. In traditional finance, Citadel has been a dominant force in equities and fixed-income markets, executing trades for retail investors via platforms like Robinhood.
Now, by stepping into crypto, Citadel could enhance market stability by improving liquidity and reducing volatility. This move could also encourage more institutional participation, making crypto markets more attractive to hedge funds and asset managers.
