BitGo CEO Anticipates More Bitcoin ETF Rejections
The CEO of BitGo, a crypto custodian, discussed the future of Bitcoin exchange-traded fund (ETF) applications in the U.S. Securities and Exchange Commission (SEC).
In an interview with Bloomberg Television, Mike Belshe highlighted the challenge faced by modern crypto firms like Coinbase, which act as both exchanges and custodians. Belshe suggested that this dual role might lead the regulatory agency to reject BTC ETF bids.
He expressed optimism about the ETF prospects but indicated a likelihood of further rejections before any positive news. Belshe emphasized the importance of market structure, echoing Gary Gensler’s stance on separating exchanges from custody.
He noted that the SEC might demand this separation before approving the applications.
Many of these applications involve Coinbase custody, a platform that, while distinct from entities like FTX, assumes a similar role as both an exchange and a custodian.
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With recent approvals as an FCM and a broker-dealer, there are perceived risks within this combined entity.
Belshe anticipated the SEC’s possible request to fully separate these functions before advancing with the applications.