Another Round of Spot Bitcoin ETF Rejections Coming, According to BitGo CEO Mike Belshe – Here’s Why

The chief government of crypto custodian BitGo says that the U.S. Securities and Change Fee (SEC) will reject one other spherical of spot market Bitcoin (BTC) exchange-traded fund (ETFs) functions.

In a brand new interview on Bloomberg Tv, BitGo CEO Mike Belshe says that the duality of contemporary crypto corporations like Coinbase – which doubles as each a crypto trade and custodian – will trigger the regulatory company to reject bids for BTC ETFs.

“We’re all excited in regards to the ETF. It’s positively getting nearer. We’re positively seeing indicators by way of the conversations that the candidates are having with the SEC. BitGo’s working with a bunch of those guys as nicely so I’m optimistic.

However I feel it’s fairly seemingly we’ve got one other spherical of ETF rejections earlier than we get the constructive information, and it actually comes again right down to market construction. Gary Gensler’s made no secret at this level you must separate exchanges from custody. The CFTC (Commodity Futures Buying and selling Fee) market construction is already this fashion – you must separate exchanges from custody [in] the fairness’s markets.”

Belshe goes on to notice that the SEC will seemingly request that these providers be separated earlier than approving the functions.

“Quite a lot of these functions are with Coinbase custody. Coinbase, whereas I’m not making an attempt to say that they’re an FTX by any means, they’re taking over additionally form of that very same playbook. Along with being an trade and a custodian, they lately bought approval from an FCM (futures fee service provider), after all, they bought a broker-dealer.

What this implies [is] there are lots of dangers in that entity that aren’t totally understood, and I feel that the SEC may fairly seemingly come again and say ‘Nope, you bought to separate out these items totally earlier than we’re going to maneuver ahead.’”

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