BitGo CEO expects further complications before a Bitcoin ETF can hit market

cyptouser6 months agoCryptocurrencies News111

In a recent interview with Bloomberg TV, BitGo CEO Mike Belshe expressed a cautious outlook on the approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. SEC.

Belshe’s optimism regarding the potential approval of a spot Bitcoin ETF was accompanied by a dose of realism, indicating that the path to approval might encounter additional hurdles.

He said he is optimistic, but the likelihood of further rejections is high despite positive developments in discussions between ETF applicants and the SEC.

Market structure issues

The key concern highlighted by Belshe revolves around market structure issues, specifically the SEC’s insistence on the separation of exchange and custody roles. This issue has been contentious in various applications, particularly those involving Coinbase custody.

Belshe noted that the SEC’s emphasis on market structure is not unprecedented, citing the existing separation of exchanges from custody in other markets like the CFTC market structure and equities markets. He also suggested aligning with this separation model would benefit the crypto market.

According to Belshe:

“Gary Gensler’s made no secret about this point, you have to separate exchanges from custody.”

The potential rejection of ETF applications could hinge on the SEC’s concern that exchanges and custody functions are not adequately separated. Belshe specifically pointed out risks associated with Coinbase, a chosen custody partner for most ETF applicants.

Belshe believes the SEC will demand a complete separation of these functions before approving the applications.

Market optimism

Analysts estimated a 90% chance of ETF approval in January 2024, but Belshe’s remarks indicate rejection remains a distinct possibility.

The SEC has historically rejected ETF applications, citing concerns about potential market manipulation and insufficient customer protection. However, the applicants have argued that the regulator’s concerns are unfounded based on its approval of Bitcoin futures ETFs.

BitGo’s CEO also drew parallels between Coinbase’s approach and the unsuccessful strategy of its bankrupt competitor, FTX. Belshe referenced Sam Bankman-Fried’s advocacy in Washington, D.C., for a centralized regulatory framework, a model that has faced skepticism following FTX’s collapse.

The anticipation for a spot Bitcoin ETF has been a driving force behind recent Bitcoin price rallies, with the crypto community closely monitoring the SEC’s decisions.

Bitcoin is up roughly 45% since BlackRock filed its ETF application and is currently trading at $36,450 after reaching a high of $38,000 earlier in the week.

BTC Price & Market Data

At the time of press, Bitcoin is ranked #1 by market cap and the BTC price is up 0.46% over the past 24 hours. BTC has a market capitalization of $716.26 billion with a 24-hour trading volume of $13.66 billion. Learn more about BTC ›

Bitcoin

18 Nov at 5:58 pm UTC

$36,645.04

0.46%

BTCUSD Chart by TradingView

Market summary

At the time of press, the global cryptocurrency market is valued at at $1.39 trillion with a 24-hour volume of $44.06 billion. Bitcoin dominance is currently at 51.49%. Learn more ›

The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

Solana surpasses Bitcoin and Ethereum in weekend trading volume

Solana surpasses Bitcoin and Ethereum in weekend trading volume

Crypto traders’ interest in Solana remains very high as the trading volume for the digital asset sur...

Price analysis 4/5: BTC, ETH, BNB, SOL, XRP, DOGE, ADA, AVAX, TON, SHIB

Price analysis 4/5: BTC, ETH, BNB, SOL, XRP, DOGE, ADA, AVAX, TON, SHIB

92485d12˃Bitcoin (BTC) has been witnessing a tough battle between the bulls and the bears near the $...

Former Solana-based Pump.fun employee arrested after $1.9 million crypto exploit

Jarret Dunn, a former employee of Solana-based memecoin launchpad Pump.fun, is currently on bail in...

Tether coming to Telegram through TON blockchain amid $11 billion wider minting spree

Stablecoin issuer Tether confirmed to CryptoSlate its expansion of US dollar-backed USDT and gold-ba...

Anthropic halves hallucinations, adds 200k context as it launches Claude 2.1 with API access

With OpenAI in turmoil, rival Anthropic has released its latest model, Claude 2.1, which it says set...

What happened to PayPal stablecoin PYUSD after last year's launch?

What happened to PayPal stablecoin PYUSD after last year's launch?

PayPal’s entrance into the stablecoin market on Aug. 7, 2023, was welcomed by many in the industry,...