BitGo CEO Mike Belshe recently shared his cautious outlook on the approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. SEC. While he remains optimistic about the potential approval, he also acknowledges that there may be additional hurdles to overcome. One of the key concerns highlighted by Belshe is the SEC’s insistence on the separation of exchange and custody roles in the market structure. This issue has been contentious in various applications, particularly those involving Coinbase custody. Belshe believes that aligning with the separation model would benefit the crypto market. However, he also notes that the SEC may demand a complete separation of these functions before approving the ETF applications. Despite analysts estimating a 90% chance of ETF approval in January 2024, Belshe’s remarks indicate that rejection remains a distinct possibility. The SEC has historically rejected ETF applications due to concerns about market manipulation and customer protection. The anticipation for a spot Bitcoin ETF has been driving recent Bitcoin price rallies, with the crypto community closely monitoring the SEC’s decisions.

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Information	Details
Geography	Global
Countries
Sentiment	neutral
Relevance Score	1
People	Gary Gensler, Sam Bankman-Fried, Mike Belshe
Companies	BlackRock, U.S. SEC, Coinbase, BitGo, CFTC
Currencies	Bitcoin
Securities	None