Political Factors Delay Bitcoin ETF Approval in the US, Says BitGo CEO
According to Mike Belshe, the CEO of BitGo, the absence of a spot-based Bitcoin Exchange-Traded Fund (ETF) in the United States is not due to legal issues but rather political factors. In an interview with Kitco News, Belshe highlighted that the delay in approval is a result of political influence in Washington, D.C. He specifically mentioned Senator Elizabeth Warren, who has advocated for rolling back advancements in the cryptocurrency sector and has influenced the Biden administration’s policies on cryptocurrencies.
The Importance of Clear and Stable Regulations
Belshe emphasized the need for “predictable and understandable” rules to maintain America’s economic competitiveness and the global reserve currency status of the U.S. dollar. He believes that clear and easily comprehensible regulations are crucial for both Democrats and Republicans to support. Belshe stated that rule changes should only occur if there is a change in legislative text, advocating for stability and clarity in regulation.
BitGo and Swan Bitcoin Plan First Bitcoin-Only Trust Company
BitGo and Swan Bitcoin announced their plans to establish the first Bitcoin-only trust company in the United States, pending regulatory approval. This joint venture aims to combine BitGo’s expertise in Bitcoin cold storage technology and regulatory compliance with Swan’s proficiency in customer onboarding, fraud prevention, and AML/KYC procedures. The collaboration has been in progress for nearly a year and focuses on robust qualified custody models. The companies aim to separate exchange and custody functions, following a model that has been successful in the U.S. financial industry for over a century.
Promoting Innovation in Custodial Services
Cory Klippsten, CEO of Swan, expressed that there has long been a demand for a Bitcoin-only software and services stack that focuses solely on Bitcoin’s unique features. Swan aims to build a dedicated Bitcoin ecosystem separate from industry speculators, fostering innovation in custodial services.
Resilience in the Bear Market
Despite the ongoing Bitcoin bear market, both BitGo and Swan have demonstrated resilience. BitGo recently completed a $100 million fundraising round, valuing the company at $1.75 billion. Swan has experienced significant revenue growth in 2023 and expects a 50% increase by year-end, surpassing $75 million in annualized revenue. Additionally, Swan acquired Specter Solutions in 2022 and plans to launch Swan Vault, a retail-focused multisig custody solution, in October.
Hot Take: Political Influence Hinders Bitcoin ETF Approval
The CEO of BitGo, Mike Belshe, believes that the absence of a spot-based Bitcoin ETF in the United States is not due to legal constraints but rather political influence within Washington, D.C. He points out that political pressure has shifted notably after President Biden’s election and Senator Elizabeth Warren’s advocacy for rolling back advancements in the cryptocurrency sector. Belshe emphasizes the importance of clear and stable regulations for sustaining America’s economic competitiveness and maintaining the global reserve currency status of the U.S. dollar. Meanwhile, BitGo and Swan Bitcoin plan to establish the first Bitcoin-only trust company in the United States, combining their expertise to promote innovation in custodial services.
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