Bitcoin
$64,418.68+5.12%
Ethereum
$3,097.09+3.79%
Binance Coin
$555.32+1.44%
Solana
$144.24+9.93%
XRP
$0.49831160+1.44%
Toncoin
$6.89+15.84%
Dogecoin
$0.15260429+4.48%
Cardano
$0.45816284+3.29%
Avalanche
$35.61+5.29%
Shiba Inu
$0.00002269+3.71%
Wrapped Bitcoin
$64,478.66+7.28%
Bitcoin Cash
$486.71+3.65%
PlayIconNav
Crypto Prices CoinDesk 20 Index CoinDesk 20 Index
Consensus 2024Price Increase Extension Ends In
01
DAY
12
HR
39
MIN
26
SEC
Markets

'Tulip Bulb' Crypto Has 'No Inherent Worth,' Man Group CEO Says

The hedge-fund company nevertheless trades crypto, using quantitative analysis to sniff out price anomalies that can prove profitable.

By Jamie Crawley
AccessTimeIconJul 26, 2021 at 9:28 a.m. UTC
Updated Sep 14, 2021 at 1:30 p.m. UTC
tulip
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Man Group CEO Luke Ellis compared crypto to tulip bulbs, saying it has "no inherent worth whatsoever."

  • Ellis described crypto as "a pure trading instrument" in an interview with the Financial Times published Monday.
  • "There is no inherent worth in it whatsoever. It's a tulip bulb," he said, recycling the oft-used comparison of crypto to the Dutch "tulipmania" market bubble in the 17th century.
  • Man Group, the world's largest publicly listed hedge fund company, does however trade crypto, using quantitative analysis to sniff out price anomalies that can prove profitable.
  • "We like to be long and short depending on what the models say is likely to happen to the market and we will trade it long and short just as happily and in as big a size as market liquidity lets you trade," Ellis said.
  • Ellis has previously called bitcoin a trading instrument rather than a long-term asset allocation.
  • "We trade around it and try and to provide some liquidity into the market," he told CNBC in March.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.