Key Takeaways
- Anticipation of a potential approval for a spot Bitcoin ETF in the US has led to increased demand for BTC
- He emphasized the necessity of improving the market structure before obtaining SEC approval
Amid delays in SEC decisions on spot Bitcoin exchange-traded fund (ETF) applications by Franklin Templeton and Global X, BitGo’s CEO, Mike Belshe, remains optimistic about the imminent approval of a spot Bitcoin ETF.
This investment vehicle allows ordinary investors exposure to Bitcoin’s price moves within their regular brokerage accounts, streamlining participation in the cryptocurrency market.
In an interview with Bloomberg, Belshe shared his positive outlook based on ongoing discussions between firms seeking Bitcoin ETF approval and the U.S. Securities and Exchange Commission (SEC).
Despite acknowledging the possibility of additional rounds of ETF rejections, he emphasized the necessity of improving the market structure before obtaining SEC approval: “I think it is quite likely we have another round of ETF rejections before we get the positive news.”
Belshe reiterated the SEC’s stance on separating crypto exchanges from custodians, underscoring the need to address this condition before receiving approvals.
He referenced Sam Bankman-Fried, the former CEO of FTX, who advocated for a multifaceted operation, attempting to consolidate various functions.
The anticipation of a potential approval for a spot Bitcoin ETF in the United States has led to increased demand for the leading cryptocurrency, resulting in a notable surge in transaction fees.
On November 16, the Bitcoin blockchain recorded fees totaling $11.6 million, showcasing heightened activity in response to the evolving regulatory landscape. As the crypto industry grapples with regulatory complexities, stakeholders closely monitor developments in ETF approvals, recognizing their potential impact on market dynamics and investor participation in Bitcoin.
