IMPORTANT POINTS:
- Tom Farley, former president of the NYSE, discussed the potential impact of a Bitcoin ETF on the crypto industry.
- Farley expressed optimism about Bitcoin, highlighting its role as a store of value and its recognition as a non-security.
- Despite the optimism, Farley tempered expectations for an immediate approval of the Bitcoin ETF by the SEC.
Former New York Stock Exchange (NYSE) Chairman Tom Farley is the latest figure in the financial world to discuss the potential impact of the approval of a spot Bitcoin Exchange Traded Fund (ETF) on the investment industry. cryptocurrencies. This comes at a time of growing speculation about the product’s possible approval by the United States Securities and Exchange Commission (SEC), a factor partly contributing to the bullish sentiment for Bitcoin (BTC).
In an interview with CNBC on November 21, Farley stated that the approval will likely lead to an influx of money into the crypto space, noting that people believe in Bitcoin and calling it “a great invention.”
Bitcoin: A recognized innovation
Addressing the importance of Bitcoin, Farley expressed confidence in its status as not a security, a sentiment also shared by regulators. This distinction, he believes, could speed up the approval process for a Bitcoin ETF, something the crypto community has long awaited.
“What gives me some optimism about Bitcoin is that everyone recognizes that Bitcoin is not a security, including regulators, so possibly the Bitcoin ETF will move faster, which would be great for the industry because money will flood into the industry with a Bitcoin ETFs. It’s just easy to buy.”
Emphasizing the widespread belief in Bitcoin’s enduring value, the former NYSE chairman highlighted its role as a store of value despite its inherent 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 reserve of value.”
Waiting for ETF approval
However, Farley tempered expectations regarding the immediate approval of a Bitcoin ETF, expressing some skepticism about a quick decision in November or December.
The former NYSE chairman suggested that the SEC’s perception of cryptocurrencies as securities creates an obstacle, since under US regulations, securities must be traded on nationally recognized exchanges, a condition that currently does not exist. many cryptocurrencies comply.
“I guess I’m a little less optimistic about the immediacy of an approval, in other words, like in November or even December. “The current president and the SEC have said that they believe that virtually everything in crypto, with the exception of Bitcoin, sometimes Ethereum, and possibly stablecoins, are securities.”Farley.
He further explained that the intertwined issues of trading crypto on recognized exchanges and ensuring reliable underlying prices could influence the regulatory decision-making process.
While acknowledging the potential for these concerns to become decoupled, Farley highlighted the prevailing sentiment from regulators, questioning how reliable the underlying prices of cryptocurrencies can be without trading on a recognized exchange.
Bitcoin ETF Impact
In fact, a spot Bitcoin ETF remains a hot topic of discussion in the crypto world, with its approval in the US set to make it the first product of its kind in the country. Significantly, the product is a pivotal catalyst in attracting institutional capital to the sector.
Meanwhile, Bitcoin continues to target the $38,000 mark. At the time of writing, the asset is trading at $37,309, reflecting daily gains of approximately 0.1%.
