FTX US chief called three factors for crypto market recovery
Brett Harrison revealed which policy moves and infrastructure changes could help the digital assets market revive
24.06.2022 - 08:10
214
2 min
0
The CEO of cryptocurrency exchange FTX US, Brett Harrison, explained how regulatory clarity and improved trading conditions may provide a framework that will restore investor confidence in the digital assets market. He noted three factors for the recovery of the cryptocurrency market:
- Clarity from US regulators
- More robust US cryptocurrency futures and options markets
- US spot cryptocurrency ETFs (exchange traded funds)
Harrison believes that clearly defined rules for the operation of crypto exchanges and other digital asset providers will attract institutional investors to the industry.
In his view, strengthening the structure of investment vehicles such as futures and options may also attract institutional capital. The expert noted that this will reduce market volatility by providing access to effective capital hedging and make it easier for companies to access the digital asset class without having to work with spot.
Harrison concluded by noting the advantages that the market will benefit from the US government’s approval of spot crypto ETF trading:
“Spot ETF approval in the US would bring efficient price discovery and cheap means of crypto exposure to one of the most regulated and well-understood asset classes in the world.”
Galaxy Digital CEO Mike Novogratz previously stated that a recovery in the cryptocurrency market could be led by the purchase of bitcoins by international hedge funds operating in the field of traditional finance. However, for this, in his view, the US Federal Reserve System (Fed) needs to stop raising interest rates.
In June, Blockstream CEO Adam Back said that the bitcoin rate could rise to $100 000 by the end of 2022 if the US Securities and Exchange Commission (SEC) approves digital asset manager Grayscale’s bitcoin ETF application.
Useful material?
Market
Tether Finance division will be responsible for the issuance and redemption of USDT stablecoins
Apr 18, 2024
Trends
The first project introduced on the platform will be BounceBit (BB)
Apr 18, 2024
Business
The rate exchange of the native ACH token reacted with a 10% increase
Apr 18, 2024
Market
Miners are hunting for the first block after halving as the value of the first satoshi could exceed $1 million
Apr 18, 2024
Market
The platform will be non-custodial and accessible to everyone
Apr 15, 2024
Market
China Asset Management, Harvest Global Investments, and Bosera Asset Management have received permits
Apr 15, 2024