Anticipation Builds Over Bitcoin ETF Approval
Many asset managers worldwide are eagerly awaiting the approval of spot Bitcoin ETF, which is expected to drive significant capital and investment into the crypto industry. However, concerns have been raised about the approval of these ETFs, particularly due to Coinbase’s integration as both an exchange and custodian.
Potential for Further Rejections of Bitcoin ETF
BitGo CEO Mike Belshe has expressed reservations about the likelihood of the US Securities and Exchange Commission (SEC) approving spot Bitcoin ETF applications. Belshe believes that the risks associated with Coinbase’s multifaceted role have not been fully understood, potentially leading to further rejections before positive news emerges.
Challenges and Concerns Regarding Bitcoin ETFs
In a recent interview with Bloomberg, Belshe cited concerns about the integration of Coinbase’s functions and emphasized the need for a complete separation of exchanges and custody, similar to how the equity market operates. He also highlighted the risks associated with Coinbase’s role as an exchange, custodian, and broker-dealer.
Advocating Custodian Role in Bitcoin ETF
Belshe pointed to custodians like BitGo, specializing in custody services without engaging in exchange or trading activities. He believes that by utilizing custodians like BitGo, the industry can address the need for separation between exchanges and custody, potentially paving the way for SEC approval of Bitcoin spot ETFs.
Hot Take
As anticipation for Bitcoin spot ETFs continues to build, BitGo CEO Mike Belshe has raised concerns about the integration of Coinbase as both an exchange and custodian. His belief that the SEC may reject Bitcoin ETF applications until Coinbase’s functions are fully separated adds a layer of complexity to the ongoing discussions.
As of the time of writing, Bitcoin, the leading cryptocurrency, is valued at $36,100, reflecting a 1% retracement in the past 24 hours and a 2% decline in the past seven days.
Featured image from Shutterstock, chart from TradingView.com
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