The Former NYSE President Believes Bitcoin ETFs Will Bring Cash Influx to Crypto
The former president of the New York Stock Exchange (NYSE), Tom Farley, predicts that Bitcoin (BTC) and other cryptocurrencies will experience a flood of cash due to the introduction of Bitcoin exchange-traded funds (ETFs). Farley, who is currently the CEO of Bullish, a crypto exchange platform, believes that while a BTC ETF approval may not happen this year, regulators and investors recognizing Bitcoin as a non-security could expedite the approval process. He explains that the industry would benefit greatly from a Bitcoin ETF since it would make investing in the asset more accessible and attract more money. Farley emphasizes that Bitcoin is widely acknowledged as a store of value, despite its volatility.
Regulatory Challenges for BTC ETF Approval
Farley expresses some skepticism about the immediate approval of a BTC ETF. He points out that the current chairman of the U.S. Securities and Exchange Commission (SEC) considers most cryptocurrencies, except Bitcoin, Ethereum, and stablecoins, as securities. According to U.S. regulations, securities must trade on nationally-recognized exchanges, which cryptocurrencies do not currently do. Farley suggests that these issues are intertwined since regulators question the trustworthiness of underlying prices if crypto assets don’t trade on exchanges.
Optimism Based on Recognition of Bitcoin’s Non-Security Status
Despite his reservations about BTC ETF approval this year, Farley believes that the recognition of Bitcoin as a non-security by regulators and investors could potentially speed up the process. He highlights the importance of this recognition for the industry as it would lead to an influx of cash through a Bitcoin ETF. The ease of purchasing Bitcoin through an ETF would attract more investors to the industry. Farley reiterates that Bitcoin’s status as a store of value is widely acknowledged, despite its volatility.
Hot Take: Bitcoin ETFs and the Future of Crypto Investments
The former president of NYSE, Tom Farley, believes that the introduction of Bitcoin exchange-traded funds (ETFs) will have a significant impact on the crypto industry. While he doesn’t expect an immediate approval of a BTC ETF, Farley is optimistic about regulators and investors recognizing Bitcoin as a non-security. This recognition would expedite the approval process and attract a flood of cash into the industry. Farley emphasizes that Bitcoin is widely acknowledged as a store of value, making it an attractive investment despite its volatility. The potential approval of BTC ETFs would make investing in Bitcoin more accessible, leading to increased adoption and growth in the crypto market.
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