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BitGo CEO Anticipates More Bitcoin ETF Rejections

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.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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