The CEO of cryptocurrency exchange BitGo, Mike Belshe, has indicated that all indications point to a positive outcome for exchange-traded funds (ETFs) for spot Bitcoin (BTC). However, he emphasized that there will be challenges ahead.Thank you for reading this post, don't forget to subscribe!
During an interview with Bloomberg on November 16, Belshe explained that discussions between companies seeking Bitcoin ETF approval and the United States Securities and Exchange Commission (SEC) are leaning towards a favorable outcome.
Yet, he cautioned that there will likely be further rejections of ETFs before receiving positive news:
“I think it’s quite likely we’ll have another round of ETF rejections before we get positive news.”
Belshe reiterated the SEC’s position on the separation of crypto exchanges from custodians, underscoring the need to address this situation before granting approval.
Moreover, he cited Sam Bankman-Fried, the former CEO of now-defunct crypto exchange FTX, stating that he aimed to transform FTX into a multifaceted operation:
“15 months ago we saw Sam Bankman-Fried march across Washington DC advocating his seven key points of regulation. He basically said, let me do all these things, it’s going to be great, it’s going to be efficient.”
Related: WisdomTree Amends S-1 Form Spot Bitcoin ETF Filing as Crypto Awaits SEC Decisions
Recent reports have suggested a significant increase in fees on the Bitcoin blockchain due to the anticipation of a potential spot Bitcoin ETF approval.
On November 16, fees paid on the Bitcoin blockchain surged to $11.6 million, marking a 746% rise in average transaction fees compared to a year earlier.
According to market analysis from Cointelegraph, Bitcoin has maintained stability near its 18-month high, surpassing its bear market trading range.
There are presently 12 asset management firms awaiting the outcome of Bitcoin ETF applications. Bloomberg analyst James Seifert has indicated a 90% likelihood of approval by January 10, 2024.
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