- Tom Farley is the latest figure in the financial world discussing the potential impact of approving a spot Bitcoin Exchange Traded Fund (ETF) on the crypto industry.
- Highlighting the significance of Bitcoin, Farley expressed his confidence that it is not a security, a sentiment shared by regulators.
- Farley tempered expectations for the immediate approval of a Bitcoin ETF and voiced doubts about a quick decision in November or December.
Former New York Stock Exchange (NYSE) President Tom Farley shared his thoughts on the approval of spot Bitcoin ETF applications.
Former NYSE President Believes in Bitcoin
Former New York Stock Exchange (NYSE) President Tom Farley is the latest figure in the financial world discussing the potential impact of approving a spot Bitcoin Exchange Traded Fund (ETF) on the crypto industry. This comes amid increasing speculation about the possible approval of the product by the U.S. Securities and Exchange Commission (SEC), seen as one of the factors contributing to the bullish market for Bitcoin (BTC).
In an interview, Farley stated that approval would likely lead to a flow of money into the crypto space, asserting that people believe in Bitcoin and describe it as a ‘great invention.’ Farley highlighted the importance of Bitcoin by expressing his confidence that it is not a security, a sentiment shared by regulators. He believes this distinction could accelerate the approval process for the long-awaited Bitcoin ETF. Farley said:
“What makes me a bit optimistic about Bitcoin is everyone, including regulators, acknowledging that Bitcoin is not a security, so probably, a Bitcoin ETF moves faster, which would be great for the industry because money will flow with a Bitcoin ETF. Just buying is easy.”
The former NYSE president emphasized people’s belief in the enduring value of Bitcoin despite its inherent volatility. Farley added, “People believe in Bitcoin, Bitcoin will be here, Bitcoin is a great invention. Really, it’s a store of value. Despite being volatile, it’s a store of value.”
Bitcoin ETF Approval Timelines
Farley tempered expectations for the immediate approval of a Bitcoin ETF and voiced doubts about a quick decision in November or December. The former NYSE president noted that the SEC’s general classification of cryptocurrencies as securities posed a hurdle because, according to U.S. regulations, securities must be traded on nationally recognized exchanges, a condition not currently met by many cryptocurrencies.
Farley mentioned that the SEC Chairman and the SEC believe that almost everything, sometimes excluding Ethereum and stablecoins, is considered a security. He explained that the intertwined issues of getting cryptocurrencies traded on recognized exchanges and providing reliable underlying prices could influence the regulatory decision-making process.
While acknowledging the potential for these concerns to be addressed, Farley raised the question of how reliable the underlying prices of cryptocurrencies could be without trading on a recognized exchange, emphasizing a widespread view among regulators.
Indeed, a spot Bitcoin ETF would be the first of its kind if approved, serving as a key catalyst to attract institutional capital to the sector. Meanwhile, Bitcoin is still targeting the $38,000 level. At the time of writing, the asset is trading at around $37,710, reflecting approximately 0.1% daily gains.
