BitGo 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
- Breaking: Bitcoin Hits New ATH Above $125k as ‘Uptober’ Kicks Off in Full Force
- 99.3% of Bitcoin Supply in Profit, Analyst Warns of Short-Term Correction
- Pro-Crypto Mike Selig Emerges As CFTC Chair Frontrunner, Gains Ripple CLO’s Endorsement
- ‘Every Crypto ETF You Can Imagine’: Expert Predicts Flurry of Filings After REX-Osprey’s 21 Applications
- Robinhood Lists Strategy’s Bitcoin-Backed Stocks, Boosting Saylor’s BTC Credit Model
- FLOKI Price Prediction as ETP Listing Drives Adoption—Is a 160% Rally Ahead?
- BNB Coin Price Hits ATH as Derivatives Activity Soars—Is $1,520 the Next Stop?
- Aster Price Eyes $3 After Channel Breakout as Open Interest Surges to $1.37B
- Will XRP Price Hit $5 if the SEC Approves ETFs This Month?
- Bitcoin Price Hits $120K Ahead of Q4 — Can Citigroup’s Forecast Hold Up?
- Pi Network Price at Risk of Another Crash as Mysterious Whale Stops Buying