NewsletterBitGo CEO Predicts Tough Road for Bitcoin ETFs
Mike Belshe, CEO of BitGo, predicts further challenges for the approval of spot Bitcoin ETFs in the United States. His insights, shared during a Bloomberg interview, highlight unresolved market structure issues as a significant barrier. Despite some optimism in the crypto market about the eventual approval of these ETFs, Belshe’s outlook suggests a different scenario. The U.S. Securities and Exchange Commission (SEC) continues to closely scrutinize these applications, emphasizing investor protection from market manipulation.
Bitcoin ETFs Face Intensified SEC Scrutiny
The collapse of FTX and the subsequent legal troubles of its founder, Sam Bankman-Fried, have cast a long shadow over the crypto industry. Bankman-Fried’s attempt to influence U.S. crypto regulations did not yield the desired results.
Now, with a potential 115-year sentence looming over him for fraud and misappropriation charges, the industry faces increased skepticism. This skepticism extends to companies like Coinbase Custody, used by many as a custodial solution for their ETF applications. Belshe notes parallels between FTX’s strategies and those employed by Coinbase, albeit clarifying that Coinbase is not being likened to FTX’s malpractices.
Significantly, major financial institutions are not immune to this scrutiny. BlackRock and Franklin Templeton, among others, have chosen Coinbase Custody for their cryptocurrency storage. This choice highlights a trend in the industry where the lines between exchanges and custodians are increasingly blurred. The SEC’s concern centers around the potential risks posed by this lack of separation, which might lead to the rejection of multiple ETF applications.
SEC Postpones Decision on Hashdex BTC ETF
The SEC’s unwavering vigilance is evident in its recent actions. For instance, the decision on Hashdex’s application for a spot Bitcoin ETF in the U.S. was postponed in mid-November 2023. This move underscores the regulator’s commitment to ensuring robust investor protection measures are in place. Consequently, the industry is left to navigate these regulatory challenges, which show no signs of abating.
Read Also: CoinShares Analyst Predicts BTC Hitting $81,000 Amid Bitcoin Spot ETF Speculations
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Jerome Powell Speech: Fed Chair Signals Pause In Rate Cuts, Bitcoin Falls
- XRP News: Gemini Adds RLUSD Support on XRPL for Faster Payments
- Breaking: Fed Cuts Interest Rates by 25 Bps at FOMC Meeting, Matching Expectations
- Elon Musk’s SpaceX Moves $94M in Bitcoin Amid IPO Plans: Sell-Off or Custody Shuffle?
- Michael Saylor’s Strategy Challenges MSCI Over Bitcoin Treasury Exclusion Plan
- Top Analyst Sees Ethereum Price Having a “Big” Breakout as Catalysts Align
- Sui Price Breaks Out of Falling Wedge: Is $2 Next Target?
- Chainlink Price Prediction: Why $20 is Next Key Target
- Solana Price Targets $200 Amid Increased Whale Accumulation
- Cardano Price Outlook: Expecting a 30-40% Bullish Wave Soon
- XRP Price Eyes Big Breakout as Triangle Pattern Signals 16% Move
