Among asset managers worldwide, anticipation has reached a fever pitch for the approval of spot Bitcoin ETF. While the potential for these ETFs to drive significant capital and investment into the crypto industry, including Bitcoin, is remarkable, there are concerns that analysts may have overlooked.
BitGo CEO Mike Belshe has expressed reservations about the likelihood of the US Securities and Exchange Commission (SEC) approving spot Bitcoin ETF applications due to Coinbase’s integration as both an exchange and custodian.
Belshe argues that the risks associated with Coinbase’s multifaceted role have not been fully understood, potentially leading to further rejections before positive news emerges.
Bitcoin ETFs May Encounter Further Rejections?
In a recent interview with Bloomberg, Belshe shared his insights on the state of Bitcoin ETF applications and their challenges. While expressing optimism and acknowledging positive conversations between applicants and the SEC, Belshe believes another round of rejections may be necessary to address market structure concerns.
Belshe cites SEC Chairman Gary Gensler’s emphasis on separating exchanges from custody, drawing parallels with how the equity market operates. Belshe also alludes to Coinbase’s role as an exchange, custodian, and broker-dealer, highlighting the risks within the entity that may not be fully comprehended.
Belshe’s concerns stem from Coinbase’s integration of multiple functions within its platform. While he clarifies that Coinbase is not on the same level as bankrupt crypto exchange FTX and its co-founder Sam Bankman-Fried, Belshe asserts they are employing a “simi
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Author: Ronaldo Marquez
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