BitGo CEO Mike Belshe Predicts Another Round of Bitcoin ETF Rejections – Here’s the Reason Why

BitGo CEO Mike Belshe Predicts Another Round of Bitcoin ETF Rejections – Here's the Reason Why


Spot Bitcoin (BTC) ETF Applications to be Rejected by SEC, Predicts BitGo CEO

Mike Belshe, the CEO of BitGo, believes that the United States SEC will issue rejections for another round of spot market Bitcoin (BTC) exchange-traded fund (ETF) applications. In a recent interview on Bloomberg Television, Belshe stated that the SEC will likely reject ETF bids due to the dual nature of modern cryptocurrency corporations, including corporations like Coinbase that serve as both cryptocurrency exchanges and custodians.

Belshe expressed optimism about the ETF but predicted another round of rejections before any positive news is shared. He highlighted the need to separate custody from exchanges, citing Gary Gensler’s emphasis on market structure. Belshe likewise suggested that the approval of such applications would be contingent on separating exchanges and custody services.

READ NOW
CME Traders Engage in Dual Bets for Potential Approval of Spot Bitcoin ETF

“ Many of these applications are with Coinbase custody. Coinbase, while I’m not attempting  to emphasize that they’re an FTX by any means, they are taking on likewise kind of that same playbook. Along with being an exchange and a custodian, they recently got approval from an FCM (futures commission merchant), of course, they got a broker-dealer. What this implies [is] there are many of dangers in that entity that aren’t fully understood, and I think that the SEC could quite likely come back and say ‘Nope, you got to separate out these things fully before we’re going to move forward.’”

The Future of Spot Bitcoin (BTC) ETFs: Separation of Services is Key

Given the predicted rejections, Belshe anticipates that the SEC will request a complete separation of services before considering any ETF applications. Although while noting the excitement surrounding ETFs and the increasing proximity to approval, Belshe highlighted the need to heed Gensler’s preferences regarding market structure.

READ NOW
Rare Revival Plot: KyberSwap Refuses Hacker’s Request, Exposing Exploitation

Hot Take

According to BitGo CEO Mike Belshe, the separation of services between exchanges and custody is critical, and until this structure is addressed, another round of spot market Bitcoin (BTC) ETF rejections from the SEC is expected.

Author – Contributor at | Website

Daisy Hodley emerges as a luminary blending the roles of crypto analyst, devoted researcher, and editorial virtuoso into a harmonious symphony. In the realm of digital currencies, Daisy’s insights resonate with an exquisite resonance across a diverse spectrum of minds. Her adeptness in decoding intricate threads of crypto complexities seamlessly intertwines with her editorial finesse, translating intricacy into a captivating melody of understanding.

READ NOW
“FTX and Alameda Execute Ongoing $22 Million Crypto Asset Liquidation Transfer”
Read Disclaimer
This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. Lolacoin.org does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.

Subscribe to our Social Media for Exclusive Crypto News and Insights 24/7!

Email me the hottest Crypto news!

Latest Crypto News

Share via
Share via