Former New York Stock Exchange (NYSE) Chairman Tom Farley has become the latest name in the financial world to discuss the potential impact of spot Bitcoin Exchange Traded Fund (ETF) approval on the cryptocurrency industry. This development comes amid increasing speculation regarding possible product approval by the United States Securities and Exchange Commission (SEC), a factor that has partially contributed to Bitcoin’s (BTC) upward trend. Here are the details…
Bitcoin comment from NYSE President: Great!
In a Nov. 21 interview with CNBC, Farley noted that approval would likely lead to money flowing into the crypto space, noting that people believe in Bitcoin and calling it a “great invention.” Addressing the importance of Bitcoin, Farley expressed confidence in its non-security status, a sentiment echoed by regulators. He believes this distinction could speed up the approval process for a Bitcoin ETF that the crypto community has long awaited. Farley said:
What gives me optimism about Bitcoin is that everyone, including regulators, recognizes that Bitcoin is not a security, so probably the Bitcoin ETF will go faster, which would be great for the industry because with a Bitcoin ETF money would flow into the industry . It’s very easy to buy.
ETF approval: What happened?
Highlighting the widespread belief in Bitcoin’s enduring value, the former NYSE chairman underlined Bitcoin’s role as a store of value despite its inherent volatility. Farley said, “People believe in Bitcoin. Bitcoin will be here, Bitcoin is a great invention. It just is. It’s a store of value. I know it’s choppy. “It is a store of value,” he added. However, Farley tempered expectations for immediate approval of a Bitcoin ETF, expressing some skepticism that a quick decision would be made in November or December.
The former NYSE chairman argued that the SEC’s perception of cryptocurrencies as securities poses an obstacle because U.S. regulations require securities to be traded on nationally recognized exchanges, a requirement that many cryptocurrencies currently do not meet. He used the following statements:
I think I’m a little less optimistic about an immediate approval in November or December. The current Chairman and the SEC have said that they believe almost everything in crypto is a security, with the exception of Bitcoin, sometimes Ethereum, and possibly stablecoins.
ETF’s impact on the cryptocurrency market
Farley also explained that the intertwining of crypto trading on well-known exchanges and ensuring reliable underlying prices could impact regulatory decision-making. While Farley acknowledged the potential for these concerns to diverge, he underlined the prevailing sentiment among regulators, questioning how reliable the underlying prices of cryptocurrencies could be without being traded on a recognized exchange.
Indeed, the spot Bitcoin ETF remains a hot topic of discussion in the crypto world, and its approval in the US is set to make it the first such product in the country. This product will serve as an important catalyst in attracting corporate capital to the sector. Meanwhile, Bitcoin continues to target the $38,000 level. At the time of writing, the asset is trading at $37,797, with a daily gain of approximately 0.1 percent.
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