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Mike Belshe, CEO of cryptocurrency exchange BitGo, has
suggested that all indications are leaning toward a
favorable outcome for a spot Bitcoin
exchange-traded fund (ETF). However, he emphasized that
the journey ahead won’t be without challenges.
In an interview with Bloomberg on Nov. 16, Belshe
explained that based on discussions between firms seeking
Bitcoin ETF approval and the United States Securities and
Exchange Commission (SEC), he holds an optimistic view
that approval is imminent.
However, he pointed out that improving the market
structure is a must before the SEC grants ultimate
approval for a Bitcoin ETF:
“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, emphasizing that this condition
must be addressed before approval.
Furthermore, he referenced Sam Bankman-Fried, the former
CEO of the now-defunct crypto exchange FTX, claiming that
he was trying to make FTX a multifaceted operation:
“15 months ago we had Sam Bankman-Fried marching all over Washington D.C. advocating his seven key points of regulations. He basically said, let me take on all these functions, it is going to be great, it is going to be efficient.”
This follows reports indicating that the excitement
surrounding the potential approval of a spot Bitcoin ETF
led to a significant surge in fees on the Bitcoin
blockchain in recent times.
On Nov. 16, the fees paid on the Bitcoin blockchain soared
to $11.6 million, marking a 746% increase in the average
transaction fee compared to 2022.
According to Cointelegraph’s market analysis, Bitcoin is
holding steady near 18-month highs, surpassing its bear
market trading range.
There are currently 12 asset management firms waiting to
hear outcomes for Bitcoin ETF applications. According to
Bloomberg analyst James Seyffart, there’s a 90% chance of
approvals by Jan. 10, 2024.