Former New York Stock Exchange (NYSE) President Tom Farley is the latest figure in the financial world to discuss the potential impact of a spot Bitcoin Exchange-Traded Fund (ETF) approval on the crypto industry. This comes when there is growing speculation about the possible product approval by the United States Securities and Exchange Commission (SEC), a factor partly contributing to Bitcoin’s (BTC) bullish sentiment.
In an interview with CNBC on November 21, Farley stated that the approval will likely lead to money flooding into the crypto space, noting that people believe in Bitcoin while terming it ‘a great invention.’
Addressing the significance of Bitcoin, Farley expressed confidence in its status as a non-security, a sentiment echoed by regulators. This distinction, he believes, could expedite the approval process for a Bitcoin ETF, which the crypto community has long awaited.
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“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.”
Emphasizing the widespread belief in Bitcoin’s enduring value, the former NYSE president 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 store of value,” he added.
Bitcoin ETF approval timelines
However, Farley tempered expectations regarding the immediate approval of a Bitcoin ETF, expressing some skepticism about a swift decision in November or December.
The former NYSE president suggested that the SEC’s perception of cryptocurrencies as securities creates a hurdle since, according to US regulations, securities must trade on nationally recognized exchanges – a condition not currently met by many cryptocurrencies.
“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.
He further explained that the interwoven issues of crypto trading on recognized exchanges and ensuring trustworthy underlying prices might influence the regulatory decision-making process.
While acknowledging the potential for these concerns to be decoupled, Farley highlighted the prevailing sentiment of regulators, questioning how trustworthy the underlying prices of cryptocurrencies can be without trading on a recognized exchange.
Impact of Bitcoin ETF
Indeed, a spot Bitcoin ETF remains a hot topic of discussion in the crypto world, with its approval in the US poised to make it the first such product in the country. Significantly, the product is a pivotal catalyst for attracting institutional capital to the sector.
In the interim, Bitcoin continues to aim for the $38,000 mark. At the time of this writing, the asset is trading at $37,797, reflecting daily gains of approximately 0.1%.