Mike Belshe, CEO of cryptocurrency exchange BitGo, has suggested that all signs point to a favorable outcome for a spot Bitcoin (BTC) exchange traded fund (ETF). However, he stressed that the journey ahead will not be without challenges.
In an interview with Bloomberg on November 16, Belshe explained that based on discussions between companies seeking Bitcoin ETF approval and the US Securities and Exchange Commission (SEC), he is optimistic that approval is imminent is imminent.
However, he noted that improving market structure is a must before the SEC grants final approval for a Bitcoin ETF:
“I think it is very likely that we will see another round of ETF rejections before we get the positive news.”
Belshe reiterated the SEC’s stance on the separation of crypto exchanges and custodians, emphasizing that this condition must be clarified before granting approvals.
Additionally, he referred to Sam Bankman-Fried, the former CEO of the now-defunct crypto exchange FTX, claiming that he is trying to make FTX a diverse company:
“Fifteen months ago, Sam Bankman-Fried marched throughout Washington DC advocating his seven key points on regulation. He basically said, “Let me take over all these functions, it will be great, it will be efficient.”
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This follows reports indicating that the excitement surrounding the possible approval of a spot Bitcoin ETF has recently led to a significant increase in fees on the Bitcoin blockchain.
On November 16, fees paid on the Bitcoin blockchain rose to $11.6 million, representing a 746% increase in the average transaction fee compared to the previous year.
According to Cointelegraph market analysis, Bitcoin is holding steady near its 18-month peak and surpassing its bear market trading range.
There are currently 12 asset management firms awaiting the results of Bitcoin ETF applications. According to Bloomberg analyst James Seyffart, there is a 90 percent chance of approvals by January 10, 2024.
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