Cantor Fitzgerald CEO Highlights Regulatory Hurdles for bitcoin Adoption in Traditional Finance
Cantor Fitzgerald CEO Howard Lutnick has shed light on the increasing interest from traditional financial institutions in bitcoin, pointing to regulatory obstacles as the primary deterrent. In a recent post on X, Lutnick emphasized that while bitcoin is gaining recognition as an emerging asset class in traditional finance, regulatory constraints are impeding its full integration.
Lutnick pointed out that U.S. banks are reluctant to hold bitcoin due to regulations mandating them to reserve an equivalent amount of their capital, rendering it unfeasible. He expressed that if the regulatory landscape were more favorable, mainstream financial firms would readily embrace bitcoin.
According to Lutnick, bitcoin has long been considered an outsider by the traditional financial community, but it is now gradually infiltrating the global finance arena. He affirmed Cantor's commitment to assisting traditional finance in fully embracing bitcoin, asserting that bitcoin is a permanent fixture in the evolving financial landscape.
Cantor Fitzgerald Ventures into bitcoin Financing Space
Cantor Fitzgerald, a prominent player in the financial industry, has announced its plans to venture into the bitcoin financing realm, earmarking $2 billion for lending to bitcoin holders. The firm, known for managing U.S. Treasury trading for stablecoin issuer Tether, aims to provide leverage for bitcoin investors.
Lutnick emphasized his belief that bitcoin should have unrestricted global trading access, likening its status to that of gold. He reiterated Cantor's commitment to facilitating seamless bitcoin trading worldwide without limitations and exceptions. Moreover, Lutnick revealed that Cantor already possesses a significant bitcoin holding.
The new bitcoin financing initiative by Cantor will collaborate with chosen bitcoin custodians, although the specific partners and the launch timeline remain undisclosed. Lutnick highlighted that after exhausting the initial $2 billion allocation, Cantor plans to incrementally increase its investment by an additional $2 billion to sustain the business.
Notably, Lutnick, a staunch advocate for cryptocurrencies, previously served as the chair of Donald Trump's presidential transition team, showcasing his involvement in both traditional finance and the crypto space.
Institutional Investors Flock to bitcoin ETFs
Recent data from Bitwise indicates a surge in institutional investors bolstering their bitcoin holdings through spot ETFs. In the second quarter of 2024, around 66% of institutional investors either maintained or augmented their bitcoin ETF positions.
Analysis of 13F filings submitted to the Securities and Exchange Commission (SEC) by Bitwise showcased that 44% of asset managers expanded their bitcoin ETF holdings during the quarter, while 22% opted to retain their positions. Conversely, only 21% reduced their holdings, with a mere 13% exiting entirely.
Furthermore, State Street, a leading U.S. financial services provider, recently partnered with Swiss-based crypto firm Taurus to enhance its digital asset services offerings. This collaboration aims to cater to the escalating institutional demand for digital asset services by introducing new capabilities like tokenizing real-world assets for seamless digital trading.
State Street, already known for offering fund administration and accounting services for crypto investments, is broadening its portfolio to include cryptocurrency custody services and the facilitation of tokenized assets, expanding its foothold in the digital asset landscape.
