The recent increase in applications for spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETF) is bringing fresh life to the crypto market. This includes an attempt from traditional finance giants to go after Spot crypto ETFs which are designed to mirror the market price of underlying assets. It is done in order to offer investors exposure to cryptocurrencies without the need to directly enter the market.
However, former New York Stock Exchange (NYSE) President, Tom Farley seems to be moving ahead with a bullish approach towards the crypto market.
Tom Farley’s bullish crypto outlook
In an interview with CNBC’s Squawk Box, ex NYSE stated that everyone acknowledges that Bitcoin (BTC) is not a security, including the regulators. He added that money will flood into the industry with a Bitcoin ETF approval as it’s just easy to buy it. However, people believe in Bitcoin as it is a great invention, he further added.
Meanwhile, the U.S. Securities and Exchange Commission (SEC) known for rejecting these ETF approval applications is expected to reconsider its stance.
Tom Farley cautiously expressed his outlook on the approval of crypto ETFs. He noted that the current SEC chairman and the regulatory body view most cryptocurrencies, except Bitcoin, Ethereum, and stablecoins, as securities.
SEC’s reconsideration, Farley’s cautious optimism
As per ex NYSE President, securities in the United States need to trade on a nationally recognized exchange, which most cryptocurrencies do not currently do. He added that the major issue in classifying digital assets as securities with the need for trustworthy underlying prices traded on recognized exchanges. This suggests potential challenges in gaining regulatory approval for crypto ETFs.
It is important to note that, Bullish, the digital asset exchange led by former NYSE president went on to acquire the crypto news website CoinDesk from Barry Silbert’s Digital Currency Group (DCG). As per reports, CoinDesk is set to function as an independent subsidiary of Bullish. However, the terms of the acquisition remain undisclosed but reports suggest it’s an all-cash deal.