Virtu continues to see crypto as a 'long-term growth opportunity'

Quick Take

  • Virtu Financial is still committed to the crypto space despite the slump in prices and collapse of several industry institutions.
  • The firm did not experience any material losses in the wake of FTX’s meltdown and bankruptcy. 

Trading giant Virtu Financial is still committed to the crypto market, chief executive Doug Cifu said during the company's fourth-quarter earnings call. 

The market-making firm has traded across several exchanges and acted as a designated market maker for bitcoin exchange-traded funds in Canada.  

The meltdown of FTX and Alameda Research has not impacted the firm's long-term plans to operate in the cryptocurrency space, with Cifu noting Virtu continues "to view crypto as a long-term growth opportunity."

"In the aftermath of recent events, I'm proud to say that we manage the risk around the events of this quarter, as you would expect from Virtu," Cifu added. "Although we had an approximate 8-figure fiat and coin balances deployed across several venues when the FTX news broke, we acted quickly and did not realize any material losses."

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

Still, the company has reduced its activity in the space, according to co-president Joseph Molluso.

"We remain bullish on crypto as a growth area in the future and remain - and we remain excited about EDX, our joint venture," Molluso said, referring to its investment in upstart crypto exchange EDX. 

The company reported revenue dropped 29.5% to $497.8 million for the fourth quarter compared to $705.6 million a year earlier. Net income totaled $39.6 million, down from $186 million in the prior year. Shares were up more than 2.5% at 11:05 am EST.


© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].

Editor

To contact the editors of this story:
Christiana Loureiro at
[email protected]
Michael McSweeney at
[email protected]