Citadel Wants into Crypto, But Robinhood Baggage Builds Distrust

Citadel Securities, one of the world’s largest market makers, is planning to jump into the crypto space. The firm plans to become a major liquidity provider for the industry, cooperating with leading exchanges.

However, rank-and-file traders have an intense dislike of Citadel due to its manipulation in the GameStop short squeeze. As this situation develops, it may turn into a major rift between different industry factions.

Will Citadel Transform Crypto?

Citadel Securities, an American market maker with over $62 billion in AUM (asset under management), has kept an eye on the crypto market for a few years. It consistently observed potential ETF gains since 2022, and became a major institutional investor in them after approval.

Now, according to a new Bloomberg report, the firm wants to become a liquidity provider for the crypto space.

Citadel is trying to take an overt role in crypto for a few reasons, not least of which is the favorable regulatory environment. Since Trump became President, a wave of pro-crypto energy has swept through the federal government, and the firm is planning to capitalize on it.

According to anonymous sources, Citadel wishes to begin by getting approval from major exchanges.

However, not everyone is happy about this. During the 2021 GameStop stock squeeze, Citadel CEO Ken Griffin played a major role in getting Robinhood to restrict user trading.

Robinhood, a major stock trading app, acquiesced to Griffin’s request because Citadel processes much of its revenue. An SEC probe against Robinhood was dropped today, contributing to the skepticism.

“Ken Griffin and Citadel Securities are set to become the liquidity provider for cryptocurrencies. Citadel is so openly corrupt rigging the stock market that even the mainstream media says the SEC is afraid of them. What could go wrong!” claimed the Wall Street Apes

After the biggest crypto exchanges approve Citadel, the firm wishes to set up market-making teams outside the US. Citadel began laying the groundwork for expansion in Southeast Asia in 2023 and tried to build up regional stock markets in the US last year.

In other words, Citadel could have a truly revolutionary impact on the crypto market if its dreams of becoming a liquidity provider come to pass. However, this revolution may be unfavorable to the community.

If rank-and-file traders detest Citadel, will that impact exchanges’ decisions? Could enough capital simply overwhelm community attitudes? These are all vital questions.

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