Bitcoin diving into global finance

In a post on X on September 4, the US billionaire businessman said that Bitcoin has been an outsider in the TradFi community for the past five years and is only now “immersing itself in global finance “.

He added that his firm, Cantor Fitzgerald, will help the traditional financial sector incorporate Bitcoin as it seeks new asset classes.

“Cantor will help tradfi take Bitcoin all the way. Tradfi wants new asset classes and BTC is here to stay.”

TradFi companies want Bitcoin

Howard William Lutnick succeeded Bernard Gerald Cantor as head of Cantor Fitzgerald in 1991. The firm is an American financial services firm founded in 1945 with $480 billion in assets under management (AUM).

In late July, Cantor announced plans to launch a Bitcoin financing business to provide leverage to investors who hold BTC. The company said at the time that it aims to launch with $2 billion in seed funding and will continue to grow the operation substantially.

In his latest assessment of the asset, Lutnick said there were still hurdles to widespread adoption because banks still can’t clear it, can’t transact on it, can’t hold it and won’t finance it. .. still

“I think people don’t understand traditional financial services companies: they want to transact with Bitcoin, they want new asset classes to transact with.”

During the last five years, #Bitcoin has been an outsider to the tradfi community, and is now just diving into global finance. Cantor will help tradfi take Bitcoin to the end. Tradfi wants new asset classes and $BTC it is here to stay. pic.twitter.com/XdMMuw254p

— Howard Lutnick (@howardlutnick) September 3, 2024

However, they need regulators to “say it’s OK,” he added. Banks don’t want to hold Bitcoin because they have to lock up the cash equivalent, he said. But if there was regulatory approval, “you’re going to see all the traditional financial services companies, the big banks, the big brokerage firms, they’re all going to go headfirst into Bitcoin.”

He said it was a slow and steady process, but eventually there will be a chairwoman of the Commodity Futures Trading Commission (CFTC) who says Bitcoin is a financial asset and we will treat it as such.

“When that happens, you’re going to see Bitcoin move in a very strong and positive direction,”

Ultimately, as Bitcoin “is invited to this party” over the next five years, it will go up, the billionaire executive concluded.

But not yet…

Unfortunately, today the price of bitcoin is going in the other direction, with a drop of more than 4%, falling back to the support levels of $56,600.

The asset has been slowly falling since mid-March, having now lost 23% from its all-time high.

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