Bitcoin ETF Approval Nears, But Brace for More Setbacks – CEO of BitGo

Mike Belshe, CEO of cryptocurrency exchange BitGo, has suggested that all indications are leaning towards a favorable outcome for a spot Bitcoin (BTC) exchange-traded fund (ETF). However, he emphasized that the journey ahead will not be without challenges.

In an interview with Bloomberg on November 16, Belshe explained that based on discussions between companies seeking approval for Bitcoin ETF and the US Securities and Exchange Commission (SEC), he optimistically believes approval is imminent.

However, he pointed out that improving market structure is a must before the SEC grants final approval for a Bitcoin ETF:

“I think it’s very likely that we’re in for another round of ETF rejections before we get the positive news.”

Belshe reiterated the SEC’s position on separating crypto exchanges and custodians, emphasizing that this condition must be met before approval.

He further referenced Sam Bankman-Fried, the former CEO of the now-defunct crypto exchange FTX, and claimed that he was trying to turn FTX into a multi-faceted operation:

“Fifteen months ago we had Sam Bankman-Fried marching through Washington DC to advocate for his seven key points of regulation. He basically said, let me take on all these functions, it’s going to be great, it’s going to be efficient.

Related: WisdomTree Amends Form S-1 on Spot Bitcoin ETF Filing While Crypto Awaits SEC Decisions

This follows reports indicating that excitement surrounding the potential approval of a spot Bitcoin ETF has led to a significant increase in fees on the Bitcoin blockchain in recent times.

On November 16, fees paid on the Bitcoin blockchain rose to $11.6 million, marking a 746% increase in average transaction fees compared to 2022.

According to Cointelegraph market analysis, Bitcoin is holding steady near 18-month highs, surpassing the bear market trading range.

There are currently 12 asset managers awaiting the outcome of Bitcoin ETF applications. According to Bloomberg analyst James Seyffart, there is a 90% chance of approval by January 10, 2024.

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