The Legacy Exchanges Want To Get In The Crypto Game

To investors,

Politicians on both sides of the aisle are coming together to support crypto. The industry has become too large and many of the participants are single-issuer voters going into November’s election.

But Washington DC is not going to be shown up by Wall Street.

The legacy finance industry is all-in on bitcoin, ether, and the rest of the industry. They realize this is where capital flows and new users are. These financial institutions want in on the action. Their wish was granted when the SEC approved the bitcoin spot ETFs. Next up will be ether. And then the long-tail list of coins will all be approved eventually.

Just a matter of time.

But there is still one area of the legacy system that is boxed out of participating at the moment — the legacy exchanges.

Yesterday, the NYSE President stated the following at the Consensus conference in Austin, Texas:

“If there was clear regulatory guidance [in the U.S.], it would be an opportunity to look at…The fact that you've seen $58 billion or so come to the ETFs has been a strong sign that the market is looking for regulation in traditional structures. So, hopefully, the [U.S. Securities and Exchange Commission] saw the inflows and said, 'Hey, this makes a lot of sense,' considering bitcoin ETFs have been a tremendous success.”

If you don’t think the major stock exchanges want in on the action, you are severely mistaken.

Coindesk’s Krisztian Sandor pointed out:

“NYSE's U.S.-based rival, the Chicago Mercantile Exchange (CME), a giant in regulated crypto futures trading, is planning to launch spot crypto trading to clients, the Financial Times reported earlier this month.”

This is one of the last giants to slay for the crypto industry. If the legacy exchanges allow for spot trading of these assets, there will be an incredible increase in the capital that flows into the industry.

Crypto assets have volatility and liquidity. Add in the fact that they also trade 24/7 and you have the perfect recipe for Wall Street to become obsessed.

What is interesting is that the legacy exchanges don’t have a free run into the market though. Bullish, a crypto exchange run by former NYSE President Tom Farley, is trying to get as much market share as possible. He was on the panel with the current NYSE President at Consensus yesterday.

Additionally, Coinbase is now offering derivates for oil and gold. That sounds like Coinbase may be preparing to enter the traditional market by way of the crypto market.

Ultimately that is where we are going to end up in my opinion — exchanges that allow you to trade the legacy assets alongside the crypto assets. One home for market participants to transact freely with each other. I wouldn’t be surprised if stock trading is expanded to 24 hours per day as well over time. Maybe we will need tokenization to make it happen, but maybe not.

The legacy market is on a crash-course with crypto. The exchanges are salivating over the opportunity to get in the game. And when they show up, the crypto market will learn what real size and liquidity looks like.

Hope you all have a great day. I’ll talk to everyone tomorrow.

-Anthony Pompliano

Reader Note: Today is a free email available to everyone. If you would like to receive these letters each morning, please subscribe to become a paying member of The Pomp Letter by clicking here.

Upgrade to paid

Jack Mallers is the Founder & CEO of Strike.

In this conversation, we talk about the macro environment, the edge case, use case, investment case for bitcoin, bitcoin vs shitcoins, politics, regulation, and why he believes Wall Street will capitulate and all become bitcoiners.

Listen on iTunes: Click here

Listen on Spotify: Click here

Strike CEO Jack Mallers on Bitcoin, Macro Environment, and Altcoins

Podcast Sponsors

Consensusis the largest event dedicated to all sides of crypto, blockchain and Web3. Use code POMP to get 20% off your pass and join me in Austin this May 29th-31st

Meanwhile is the world’s first licensed and regulated life insurance company built for the Bitcoin economy.

iTrustCapital allows you to buy and sell cryptocurrency in a tax-advantaged crypto IRA.

Supra- Join Supra’s early integration program for zero-cost access to the fastest oracles and dVRF across 50+ blockchains.

Propy - Now, anyone can start their on-chain journey by minting home addresses via PropyKeys and staking them for profit until they are ready to sell their home.

BetOnline - Use crypto to bet on sports, casino games, horse racing, poker and more with promo code POMP100.

Espresso Displays - The world's thinnest touchscreen portable monitor. Expand your workspace and work from anywhere.

ResiClub - Your data-driven gateway to the US housing market.

You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research.

You're currently a free subscriber to The Pomp Letter. For the full experience, upgrade your subscription.

Upgrade to paid

© 2024
548 Market Street PMB 72296, San Francisco, CA 94104
Unsubscribe