According to Mike Belshe, CEO of cryptocurrency exchange BitGo, the signs are pointing towards a positive outcome for a spot Bitcoin (BTC) exchange-traded fund (ETF). However, he cautioned that there will be challenges ahead.
In an interview with Bloomberg on November 16, Belshe expressed optimism about the imminent approval of Bitcoin ETFs based on the ongoing discussions between companies seeking approval and the United States Securities and Exchange Commission (SEC).
Belshe did acknowledge that the market structure needs to be improved before the SEC will grant approval for a Bitcoin ETF, stating, “I think it is quite likely we have another round of ETF rejections before we get the positive news.”
He emphasized the SEC’s position on separating crypto exchanges from custodians and stressed that this issue must be addressed before approvals are granted.
Furthermore, he referenced Sam Bankman-Fried, the former CEO of the now-defunct crypto exchange FTX, and his efforts to make FTX a multifaceted operation, stating, “15 months ago we had Sam Bankman-Fried marching all over Washington D.C. advocating his seven key points of regulations.”
Reports have indicated that the potential approval of a spot Bitcoin ETF has led to a significant surge in fees on the Bitcoin blockchain. On November 16, the fees paid on the Bitcoin blockchain soared to $11.6 million, marking a 746% increase in the average transaction fee compared to a year ago.
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 awaiting outcomes for Bitcoin ETF applications. Bloomberg analyst James Seyffart suggests a 90% chance of approvals by January 10, 2024.
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