Bitcoin ETF Approval Nears, But Bracing for More Setbacks: BitGo CEO

Mike Belschi, CEO of cryptocurrency exchange BitGo, suggested that all indicators are leaning towards a positive outcome for the spot Bitcoin (BTC) exchange-traded fund (ETF). However, he stressed that the journey ahead will not be without challenges.

in interview In an interview with Bloomberg on November 16, Belsci explained that based on ongoing discussions between companies seeking Bitcoin ETF approval and the US Securities and Exchange Commission (SEC), he holds an optimistic view that approval is imminent.

However, he noted that improving market structure is a must before the SEC gives final approval to a Bitcoin ETF:

“I think it’s very likely that we will have another round of ETF rejections before we get the positive news.”

Belschi reiterated the SEC’s position on separating cryptocurrency exchanges from custodians, stressing that this requirement must be addressed before approvals are granted.

Furthermore, he referenced Sam Bankman-Fried, the former CEO of the now-defunct FTX cryptocurrency exchange, claiming that he was trying to make FTX a multi-faceted operation:

“Fifteen months ago, Sam Bankman-Fried marched across Washington, D.C., defending his seven main points of regulation. He basically said, ‘Let me take on all of these, it’s going to be great, it’s going to work.'”

Related: WisdomTree Amends Form S-1 for Instant Bitcoin ETF Deposit as Cryptocurrencies Await SEC Decisions

This comes on the heels of reports that excitement surrounding the potential approval of a spot Bitcoin ETF has led to a significant increase in fees on the Bitcoin blockchain recently.

On November 16, fees paid on the Bitcoin blockchain rose to $11.6 million, representing a 746% increase in average transaction fees compared to last year.

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According to Cointelegraph’s market analysis, Bitcoin is holding near 18-month highs, breaking out of a bear market trading range.

There are currently 12 asset management firms waiting to hear the results of Bitcoin ETF applications. According to Bloomberg analyst James Seyphart, there is a 90% chance of approvals by January 10, 2024.

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