{"id":3608,"date":"2024-09-04T16:30:20","date_gmt":"2024-09-04T16:30:20","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=3608"},"modified":"2024-09-04T16:30:20","modified_gmt":"2024-09-04T16:30:20","slug":"big-banks-will-go-head-first-into-bitcoin-says-wall-street-giant-cantor-fitzgerald","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=3608","title":{"rendered":"Big Banks Will Go \u2018Head First\u2019 Into Bitcoin, Says Wall Street Giant Cantor Fitzgerald"},"content":{"rendered":"

In a video release<\/a> on Wednesday, Howard Lutnick, CEO of Wall Street firm Cantor Fitzgerald, delivers some striking predictions about the future relationship between traditional financial institutions and Bitcoin. The video, titled \u201cHoward Lutnick on Bitcoin and tradfi,\u201d is making waves within the community as Lutnick outlines a bold future where big banks will deeply engage with BTC.<\/p>\n

Big Bank Will Embrace Bitcoin<\/h2>\n

Lutnick highlights the past five years as a period of increasing proximity between Bitcoin and the mainstream financial sector, although with significant remaining barriers. He points out, \u201cThe last five [years] Bitcoin has been an outsider in the finance business but coming closer and closer and closer right now. There\u2019s an ETF just starting<\/a> to go a little bit mainstream, maybe a toe in the water of mainstream, but banks still can\u2019t clear it. Banks still can\u2019t transact in it. Banks still can\u2019t custodian it. Banks still won\u2019t transact in it and they won\u2019t finance it yet.\u201d<\/p>\n

The Cantor Fitzgerald CEO argues that the slow adoption is not due to a lack of interest from traditional financial sectors but rather regulatory bottlenecks that have yet to be addressed. \u201cI think people misunderstand traditional financial service companies. They want to transact in Bitcoin, they want new asset classes to transact in. That\u2019s just a good thing but they need the regulator to say it\u2019s okay,\u201d he elaborates.<\/p>\n

The biggest barrier for \u201ctraditional financial service companies, the big banks, big brokerage companies\u201d are the current regulations which require banks to hold capital equal to the full amount<\/a> of BTC they manage, a restriction that significantly disincentivizes them from engaging with it. \u201cRight now, today if a bank were to hold your Bitcoin they would have to set aside their own money equal to that amount in sort of like in the jail. I mean you\u2019d say so well that\u2019s crazy. The answer is that\u2019s why they don\u2019t hold it,\u201d says Lutnick.<\/p>\n

He envisions a future where regulatory changes will unlock these barriers, leading to an enthusiastic embrace of BTC by major financial institutions. \u201cIf the regulatory environment was good, you will see all the traditional financial service companies, the big Banks, big brokerage companies, they\u2019re all going to go head first into the Bitcoin pond,\u201d he asserts.<\/p>\n

The predicted pivot hinges on a potential regulatory shift that would recognize Bitcoin as a bona fide financial asset, a change Lutnick believes is inevitable. \u201cEventually there\u2019s going to be a CFTC chair<\/a> who says, you know what, Bitcoin is a financial asset and we\u2019re going to treat it as such and when that happens you\u2019re going to see Bitcoin move in a very very strong positive direction,\u201d he forecasts.<\/p>\n

Lutnick concludes, \u201cBitcoin is a financial asset and we\u2019re going to treat it as such and when that happens you\u2019re going to see Bitcoin move in a very very strong positive direction. So that\u2019s why I\u2019m a fan of Bitcoin. It\u2019s going to go much higher. It always bounces around like any other financial asset. But ultimately over the next 5 years as it gets invited into this party, up we go.\u201d<\/p>\n

Reactions From The BTC Community<\/h2>\n

Reactions from the community were swift and pointed. Arthur Hayes, co-founder and former CEO of crypto exchange BitMEX, noted<\/a> via X, \u201cSee what happens when tradfi muppets have fees to earn? They become motivated acolytes of our Lord Satoshi.\u201d<\/p>\n

Crypto analyst MacroScope, known on X as @MacroScope17, pointed out<\/a> the significant potential behind Cantor Fitzgerald\u2019s involvement. \u201cCantor\u2019s involvement in BTC hasn\u2019t gotten the attention it should. That\u2019s probably because the firm isn\u2019t really a household name in retail-land. But it\u2019s always been a smart, tough, aggressive shop with top desks in multiple areas. They\u2019re always worth watching.\u201d<\/p>\n

Hunter Horsley, CEO of Bitwise, agreed<\/a> with Lutnick\u2019s prediction. \u201cAs odd as it may seem \u2014 banks are going to be one of the biggest catalysts for this space. Not yet, but soon,\u201d he commented.<\/p>\n

At press time, BTC traded at $56,406.<\/p>","protected":false},"excerpt":{"rendered":"

In a video release on Wednesday, Howard Lutnick, CEO of Wall Street firm Cantor Fitzgerald, delivers some striking predictions about the future relationship between traditional financial institutions and Bitcoin. The video, titled \u201cHoward Lutnick on Bitcoin and tradfi,\u201d is making waves within the community as Lutnick outlines a bold future where big banks will deeply […]<\/p>\n","protected":false},"author":0,"featured_media":3609,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-3608","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/3608"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3608"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/3608\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/3609"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3608"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3608"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}