Cantor Fitzgerald CEO Howard Lutnick sees limited impact from new spot Bitcoin exchange-traded funds (ETFs) in the US on confidence in the cryptocurrency after it suffered such a setback last year, he told the World Economic Forum (WEF) in Davos, Switzerland. but he said good things about Tether.
In an interview with Bloomberg TV, Lutnick was bullish on Bitcoin (BTC). “I think BTC will remain stable, but when the halving happens, it will go up and up,” he said, but BTC spot ETFs are “just a way for Americans to buy it.” Bitcoin “is not an American thing,” according to Lutnick:
“I can give you money on Venmo and PayPal.[…] For us [американцев] it is a speculative asset. But for countries like Argentina, Venezuela, Turkey, these cryptocurrency assets matter. Stablecoins matter in these countries. This is a way to hold the dollar.”
Lutnik’s enthusiasm for stablecoins is no coincidence. The financial services company he heads manages Tether Holdings' portfolio of U.S. Treasury securities. Lutnik gave assurances regarding Tether (USDT):
“I manage many, many of their assets.[…] From what we've seen and the work we've done, they have the money they say they have.”
Tether has been criticized for opaque accounting practices and received the second-lowest rating in S&P Global's Stablecoin Stability Assessment. Despite the attestations, the stablecoin issuer has never been audited and has been the subject of rumors and suspicions regarding its financial condition. The last assessment report was published on October 31, 2023.
Related: Former Cantor Executives Launch Crypto Lending Platform in Anticipation of Bitcoin ETF
In February 2021, Tether and parent company Bitfinex reached an agreement with the New York Attorney General's Office requiring the company to report reserves quarterly for two years. Tether is reportedly working on a real-time inventory reporting system, which could arrive in 2024.
Billionaire and Cantor Fitzgerald CEO Howard Lutnick says, “When the halving comes, #bitcoin will start to rally and grow”pic.twitter.com/XVJSIrEJqm
— Documenting ₿itcoin (@DocumentingBTC) January 16, 2024