Former NYSE President Discusses Potential Impact of Bitcoin ETF Approval
Tom Farley, the former President of the New York Stock Exchange (NYSE), has joined the conversation surrounding the potential approval of a spot Bitcoin Exchange-Traded Fund (ETF) and its impact on the crypto industry. Speculation about the approval by the United States Securities and Exchange Commission (SEC) has been growing, contributing to the bullish sentiment around Bitcoin (BTC).
In an interview with CNBC, Farley expressed his belief that if a Bitcoin ETF is approved, it will lead to an influx of money into the crypto space. He emphasized that people have faith in Bitcoin and consider it a significant invention.
Farley also highlighted that Bitcoin is widely recognized as a non-security, which aligns with regulators’ views. This distinction could potentially expedite the approval process for a Bitcoin ETF, which has long been anticipated by the crypto community.
“The thing about Bitcoin that gives me some optimism is that everyone acknowledges Bitcoin is not a security, including the regulators, so possibly the Bitcoin ETF does go ahead more quickly, which would be great for the industry because money will flood into the industry with a Bitcoin ETF. It’s just easy to buy.”
The former NYSE president further emphasized Bitcoin’s enduring value as a store of value despite its volatility.
“People believe in Bitcoin, Bitcoin is going to be here, Bitcoin is a great invention. It just is. It is a store of value. I know it’s volatile; it is a store of value,” he added.
Bitcoin ETF Approval Timelines
However, Farley expressed skepticism about an immediate approval of a Bitcoin ETF in November or December. He pointed out that the SEC’s perception of cryptocurrencies as securities poses a hurdle since securities must trade on nationally recognized exchanges according to US regulations, a condition that many cryptocurrencies currently do not meet.
“I guess I’m a little less optimistic of the immediacy of an approval, in other words, like November or even December. The current Chairman and the SEC have said they believe that pretty much everything in crypto, with the exception of Bitcoin, sometimes Ethereum, and possibly stablecoins, are securities,” Farley added.
Farley also mentioned that the regulatory decision-making process might be influenced by concerns about crypto trading on recognized exchanges and ensuring trustworthy underlying prices. He questioned the reliability of cryptocurrency prices without trading on recognized exchanges.
Impact of Bitcoin ETF
The approval of a spot Bitcoin ETF in the US would be a significant development in the crypto world and serve as a catalyst for attracting institutional capital to the sector. Currently, Bitcoin is aiming for the $38,000 mark and is trading at $37,797 with daily gains of approximately 0.1%.
Hot Take: The Potential Impact of a Bitcoin ETF Approval on the Crypto Industry
The potential approval of a spot Bitcoin Exchange-Traded Fund (ETF) has generated considerable excitement in the crypto industry. Former NYSE President Tom Farley believes that if a Bitcoin ETF is approved, it will result in a surge of money entering the industry. The widespread belief in Bitcoin’s enduring value and its recognition as a non-security by regulators could expedite the approval process.
However, Farley remains skeptical about an immediate approval due to regulatory hurdles and concerns about trustworthy underlying prices. Despite this, the approval of a Bitcoin ETF in the US would have a profound impact on attracting institutional capital to the crypto sector.
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