BitGo’s CEO, Mike Belshe, is optimistic about the prospects of a spot Bitcoin exchange-traded fund (ETF), indicating that the signs point towards a favorable outcome. In an interview with Bloomberg on November 16, Belshe expressed confidence in the ongoing discussions between firms pursuing Bitcoin ETF approval and the U.S. Securities and Exchange Commission (SEC).
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While Belshe anticipates a positive decision, he acknowledged that challenges lie ahead on the journey to approval. He emphasized the necessity of enhancing the market structure, stating that another round of ETF rejections is likely before receiving positive news:
“It is quite likely we have another round of ETF rejections before we get the positive news.”
Belshe reiterated the SEC’s requirement to separate crypto exchanges from custodians, underscoring that addressing this condition is crucial for ultimate approval. He referred to Sam Bankman-Fried, the former CEO of the now-defunct FTX crypto exchange, who advocated for a multifaceted approach to comply with regulations:
“15 months ago we had Sam Bankman-Fried marching all over Washington D.C. advocating his seven key points of regulations. He basically said, let me take on all these functions; it is going to be great, it is going to be efficient.”
Recent reports suggest that the anticipation surrounding a potential spot Bitcoin ETF approval has led to a substantial increase in fees on the Bitcoin blockchain. On November 16, fees reached $11.6 million, marking a 746% surge in the average transaction fee compared to a year ago.
Despite these challenges, Bitcoin‘s market performance remains robust, with the cryptocurrency holding steady near 18-month highs, surpassing its bear market trading range, according to Cointelegraph’s market analysis.
Currently, 12 asset management firms are awaiting outcomes for their Bitcoin ETF applications. Bloomberg analyst James Seyffart estimates a 90% chance of approvals by January 10, 2024.