BitGo CEO’s Market Structure Concerns Dampen Spot Bitcoin ETF Hopes

BitGo CEO's Market Structure Concerns Dampen Spot Bitcoin ETF Hopes

Insights on Bitcoin (BTC) ETF Approval by the SEC

In a recent interview, BitGo CEO Mike Belshe shared his opinions on the likelihood of a Bitcoin (BTC) ETF being approved by the United States Securities and Exchange Commission (SEC). As per Decrypt’s report, Belshe expressed a combination of optimism and caution, acknowledging conversations between ETF applicants and the SEC while predicting probable rejections ahead.

Belshe’s optimism comes from the ongoing talks indicating progress toward a spot Bitcoin (BTC) ETF, but he likewise balanced it with a realistic outlook, suggesting that there might be additional obstacles on the path to approval.

Market Structure Concerns and Price Impact

Belshe highlighted the SEC’s emphasis on the separation of exchange and custody roles as a primary concern, which he believes could pose additional challenges. The anticipation for a spot Bitcoin (BTC) ETF has been a driving factor in Bitcoin (BTC) price rallies, and the cryptocurrency community is closely monitoring the SEC’s actions.

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Belshe likewise mentioned the comparison between Coinbase’s approach and its bankrupt competitor FTX’s strategy, which has been viewed skeptically following FTX’s collapse.

18- 30 days Timeline and Institutional Obstacles

Kevin O’Leary, the chairman of O’Leary Ventures and a trending figure from “Shark Tank,” recently projected an 18- 30 days timeline for the SEC, during which he emphasized the necessity of a compliant cryptocurrency exchange to verify daily spot market pricing for the SEC’s approval of a spot Bitcoin (BTC) ETF.

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The absence of such an exchange is a whole lot of barrier, according to O’Leary, who likewise identified two main obstacles for institutional investment in Bitcoin (BTC): SEC compliance and Bitcoin’s 24/7 trading nature.

Future Prospects and Impact of Approval

Regardless of these challenges, O’Leary pointed out that major institutions are interested in investing in Bitcoin, primarily attracted by its liquidity and status as a store of wealth. And with SEC Chairman Gary Gensler set to remain in his position for another 18 months, O’Leary anticipates that the approval of a spot Bitcoin (BTC) ETF could coincide with the end of Gensler’s current term.

He closed by emphasizing the whole lot of impact that SEC approval of a spot Bitcoin (BTC) ETF would have on Bitcoin (BTC) demand, echoing Microstrategy Chairman Michael Saylor’s expectation of a doubling in Bitcoin (BTC) demand following the halving and the approval of spot Bitcoin (BTC) ETFs.

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Hot Take: SEC Approval’s Probable Impact

The insights provided by BitGo CEO Mike Belshe and Kevin O’Leary shed light on the evolving landscape of Bitcoin (BTC) ETF approval by the SEC, conveying a combination of optimism and caution. Regardless of anticipated progress and the  capacity for a spot Bitcoin (BTC) ETF, there remain whole lot of barriers, such as market structure concerns and the absence of a compliant cryptocurrency exchange. Amid these obstacles, there is a heightened awareness of the impact that SEC approval of a spot Bitcoin (BTC) ETF could have on Bitcoin (BTC) demand and institutional investment in the cryptocurrency.

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