Tom Farley, a former president of the New York Stock Exchange, said in a recent statement that Bitcoin will witness a huge inflow of capital after the approval of a Spot Exchange-Traded fund (ETF) by the United States Securities and Exchange Commission (SEC).
BTC is up more than 10% this month in anticipation of the approval of an ETF. Price of bitcoin has increased about %140 in the last year alone.
Tom Farley: Money will ‘Flood’ into Bitcoin
In an interview with CNBC, Farley, who is now the chief executive officer (CEO) of digital asset trading platform Bullish, noted that despite being one of the most volatile assets, Bitcoin is a legitimate “store of value.” He also pointed out that it is the only digital asset that is not recognized as a security by the SEC and other US regulators. This fact could further boost the chances of approval of a Spot ETF.
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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.”
“This guy ran the New York Stock Exchange, he’s all in on Bitcoin and crypto now,” said co-anchor of CNBC’s Squawk Box Joe Kernen. “They use that as credibility for the asset class.”
On the other hand, a dozen applications have been submitted to the SEC for the approval of a Spot Bitcoin ETF. Some of the leading contenders include BlackRock, 21Shares, ARK Invest, Grayscale, Fidelity, and Franklin Templeton. The regulator has not yet approved any of these applications.
It’s worth noting that SEC Commissioner Hester Peirce stated earlier that the agency has “no reason” to stand against the approval of a Spot Bitcoin ETF.
Farley’s Rising Presence in Digital Asset Industry
It is important to mention here that Farley spearheaded the acquisition of CoinDesk, a leading digital asset media outlet, by his company, Bullish. He also pointed out in the CNBC interview that his exchange is growing rapidly despite not spending a huge amount of money on advertising. Farley confirmed that Bullish is one of the fastest, if not the fastest, growing exchanges in Hong Kong.
In the interview, Farley also pointed out that his exchange currently allows trading of 25 ‘compliant’ digital assets. He emphasized the importance of regulatory compliance. The executive said that Bullish focuses more on regulatory compliance, unlike its competitors.
“Most of the legacy exchanges are caught up in criminal investigations, massive civil investigations, and are in a state of non-compliance. The winning exchanges are gonna be trusted, they’re gonna be compliant.”