Mike Belshe, CEO of BitGo, predicts additional challenges for the approval of spot Bitcoin ETFs within the United States. His insights, shared throughout a Bloomberg interview, spotlight unresolved market construction points as a major barrier. Despite some optimism within the crypto market concerning the eventual approval of those ETFs, Belshe’s outlook suggests a unique situation. The U.S. Securities and Exchange Commission (SEC) continues to carefully scrutinize these purposes, emphasizing investor safety from market manipulation.
Bitcoin ETFs Face Intensified SEC Scrutiny
The collapse of FTX and the next authorized troubles of its founder, Sam Bankman-Fried, have forged an extended shadow over the crypto trade. Bankman-Fried’s try and affect U.S. crypto laws didn’t yield the specified outcomes.
Now, with a possible 115-year sentence looming over him for fraud and misappropriation costs, the trade faces elevated skepticism. This skepticism extends to firms like Coinbase Custody, utilized by many as a custodial answer for their ETF purposes. Belshe notes parallels between FTX’s methods and people employed by Coinbase, albeit clarifying that Coinbase just isn’t being likened to FTX’s malpractices.
Significantly, main monetary establishments will not be resistant to this scrutiny. BlackRock and Franklin Templeton, amongst others, have chosen Coinbase Custody for their cryptocurrency storage. This alternative highlights a pattern within the trade the place the traces between exchanges and custodians are more and more blurred. The SEC’s concern facilities across the potential dangers posed by this lack of separation, which could result in the rejection of a number of ETF purposes.
SEC Postpones Decision on Hashdex BTC ETF
The SEC’s unwavering vigilance is clear in its latest actions. For occasion, the choice on Hashdex’s application for a spot Bitcoin ETF within the U.S. was postponed in mid-November 2023. This transfer underscores the regulator’s dedication to making sure sturdy investor safety measures are in place. Consequently, the trade is left to navigate these regulatory challenges, which present no indicators of abating.
Read Also: CoinShares Analyst Predicts BTC Hitting $81,000 Amid Bitcoin Spot ETF Speculations
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