BitGo CEO Anticipates More Hurdles for Bitcoin ETF Approval

By: Eva Baxter

Expectations surrounding the approval of Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) received a cautious perspective from BitGo CEO, Mike Belshe. In recent public statements, Belshe revealed his circumspect view on the matter, citing challenges that could obstruct the potential approval of these financial products.

Key issues highlighted by the BitGo's CEO regard the market structure, particularly in terms of exchange and custody roles. Belshe emphasized the SEC's demand for a clear delineation between these two functions, based on the existing operational structure in other financial markets. This point of contention has reportedly complicated several ETF applications so far.

Belshe's comments come in the midst of a 45% surge in Bitcoin value following BlackRock's ETF application and subsequent industry anticipation. The comments serve as a counterweight to the mounting optimism in the market, with many estimating a 90% chance of ETF approvals in January 2024. Nonetheless, Belshe cautioned that the potential for more rejections remains quite high.