BitGo CEO Foresees Bitcoin ETF Approval Amid Market Structure Improvements
Summary:
BitGo's CEO Mike Belshe expresses optimism for the approval of a Bitcoin ETF, despite acknowledging potential hurdles. Based on dialogues with the U.S. SEC, Belshe asserts that market structure improvements are inevitable for approval. He also indicates the SEC's necessity to separate crypto exchanges from custodians. Meanwhile, anticipation around the Bitcoin ETF approval has raised transaction fees on the Bitcoin blockchain. Currently, 12 asset management firms await ETF decisions, with a predicted 90% approval rate by January 2024.
BitGo's chief executive, Mike Belshe, indicates there's a high probability for a future approval of an exchange-traded fund (ETF) for Bitcoin (BTC), however, obstacles still remain. In a recent discussion with Bloomberg on November 16, Belshe highlighted that, based on the ongoing dialogues between Bitcoin ETF applicants and the U.S. Securities and Exchange Commission (SEC), the chances of approval are high, although enhancements to market structure are necessary for final approval from the SEC.
“I foresee another cycle of ETF rejections before we receive positive feedback,” he commented. Belshe emphasized the SEC's position of dissociating crypto exchanges from trustees. This will need to be resolved before the issuing of any approvals. In addition, he referenced Sam Bankman-Fried, erstwhile chief of the now-defunct crypto platform FTX, stating that his objective was to unify all functions under FTX for efficiency.
Recent reports show that anticipation surrounding a potential approval of a Bitcoin ETF resulted in a substantial increase in fees on the Bitcoin blockchain. On November 16, transaction fees on the Bitcoin blockchain escalated to $11.6 million, reflecting an extraordinary 746% rise in average transaction charges from a year prior.
As per Cointelegraph's market analysis, Bitcoin is sustained near its 18-month high, rising over its bearish trading limit. Presently, 12 asset management companies are awaiting decisions on their Bitcoin ETF applications. Bloomberg analyst James Seyffart predicts a 90% chance of approval by January 10, 2024.î
Published At
11/19/2023 1:02:23 AM
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