Mike Belshe, the CEO of cryptocurrency exchange BitGo, is optimistic about the prospects of a spot Bitcoin exchange-traded fund (ETF) gaining approval.
However, he acknowledges that there are hurdles to overcome in this journey.
In an interview with Bloomberg on November 16, Belshe revealed that discussions between companies seeking Bitcoin ETF approval and the United States Securities and Exchange Commission (SEC) indicate a favorable outcome is on the horizon.
Despite his optimism, Belshe cautioned that challenges lie ahead.
He believes that the SEC may still reject more ETF proposals before granting approval.
One key requirement emphasized by the SEC is the separation of cryptocurrency exchanges from custodial services. Belshe stresses that addressing this condition is essential to securing approval.
Belshe referenced Sam Bankman-Fried, the former CEO of the now-defunct crypto exchange FTX, who advocated for multifaceted operations.
Bankman-Fried proposed taking on various functions within the industry to improve efficiency and compliance with regulations.
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The anticipation surrounding the potential approval of a spot Bitcoin ETF has led to a significant increase in fees on the Bitcoin blockchain.
On November 16, transaction fees on the Bitcoin blockchain reached $11.6 million, representing a 746% rise in average transaction fees compared to 2022.
Despite these challenges, Bitcoin has remained stable, trading near 18-month highs and surpassing its previous bear market range.
Currently, 12 asset management firms are awaiting decisions on their Bitcoin ETF applications.
Bloomberg analyst James Seyffart predicts a 90% chance of approval for these applications by January 10, 2024.
In summary, Mike Belshe, CEO of BitGo, remains hopeful about the approval of a spot Bitcoin ETF.
While he anticipates a positive outcome, he acknowledges the need to address market structure concerns outlined by the SEC.
The surge in Bitcoin blockchain fees underscores the growing excitement surrounding the ETF’s potential approval, and the cryptocurrency market continues to show resilience despite regulatory challenges.
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