Bitcoin ETF on the Horizon: BitGo CEO Unveils Progress and Hurdles

BitGo CEO Mike Belshe shared both encouraging and challenging news for Bitcoin enthusiasts awaiting Securities and Exchange Commission (SEC) approval of a spot Bitcoin ETF.

Belshe expressed excitement about progress in conversations between ETF applicants and the SEC, signaling positive developments. However, he cautioned that another round of ETF rejections is likely before any affirmative news, attributing delays to concerns regarding market structure, specifically the separation of exchange and custody roles. Belshe emphasized the SEC’s stance on this separation, citing the precedent in CFTC and equities markets.

Despite anticipation and Bitcoin price rallies, the SEC’s consideration of market structure, as highlighted in its lawsuit against Coinbase, adds complexity. Belshe drew comparisons between Coinbase and FTX, noting a shift in regulatory perspectives. Former BlackRock managing director Steven Schoenfield, now at MarketVector Indexes, suggested a three to six-month timeline for potential Bitcoin ETF approval, pointing to the SEC’s engagement through public comments as a positive indicator. While traditional finance giants like BlackRock may lead, we anticipate competition from crypto-integrated firms.

Clever Robot News Desk 20^th November 2023