BitGo CEO Warns Of  More Rejection In Bitcoin ETF Applications

Update on Spot BTC ETF says that BitGo CEO Mike Belshe has cautioned the cryptocurrency community that there might be more obstacles than expected on the path to approval for a spot Bitcoin Exchange-Traded Fund (ETF). Belshe made these remarks while the cryptocurrency community nervously awaits the United States Securities and Exchange Commission’s (SEC) ruling on different Bitcoin ETF proposals.

The industry hopes that a spot ETF will open the door for a new digital asset investing era. In an interview with Bloomberg News, Belshe emphasized the SEC’s historical position on market structure, stressing that the regulatory body’s cautious approach is not a recent development.

The SEC has continuously expressed reluctance to approve a spot Bitcoin ETF, citing issues with investor protection, market manipulation, and the general integrity of the cryptocurrency space. Belshe’s remarks align with those of numerous industry insiders who recognize that regulatory obstacles must be cleared before a spot ETF is approved.

Belshe Directs Warning On Anxious Bitcoin ETF Proponents

Recent rallies in Bitcoin prices have been fueled by the expectation for a spot Bitcoi” ETF, with market sentiment strongly correlated with the perceived likelihood of regulatory approval. Analysis on Crypto Globe say that the possibility of a spot ETF, which would hold actual Bitcoin instead of depending on futures contracts, is a significant advancement that might draw institutional investors and give the cryptocurrency market more credibility.

Belshe warned anxious investors who wish for a speedy regulatory advance. The CEO’s admission of the SEC’s long-standing concerns raises the possibility that getting a spot Bitcoin ETF approved will be trickier and take longer than anticipated.

Belshe major concern relates to the present trading market structure, with particular emphasis on the SEC’s distinction of custody and exchange roles. This has raised the issue of custody, especially as it concerns Coinbase. Exemplifying his claims, Belshe mentioned the Commodity Futures Trading Commission (CFTC) market structure, suggesting that the cryptocurrency market should imitate the practice.

Kevin O’Leary Speaks On The Future Of Bitcoin ETF Future

The chairman of O’Leary Ventures, Kevin O’Leary, shared an insight on the recent development during the Benzinga Fintech Deal Day & Awards. According to O’Leary, there’s a need for complete compliance of major cryptocurrency exchanges for the SEC to speed up the spot Bitcoin ETF approval process.

He noted that the SEC’s approval requirements for a swift approval process demand total compliance by the exchanges by verifying daily spot market prices. O’Leary estimated that the regulatory body would decide on spot Bitcoin ETFs in eighteen months.

He highlighted the need for the cryptocurrency community to be patient and realistic about the regulatory process, as he expressed optimism about the approval’s eventual outcome. O’Leary argued that the absence of major cryptocurrency exchanges will pose a major barrier to the process. O’Leary mentioned Coinbase, stating that it has the potential to emerge as the best compliance exchange.

He went further to identify the two major obstacles facing institutional investments in the Bitcoin sector of the cryptocurrency industry. The first major barrier, according to O’Leary, is the SEC’s total compliance, followed by BTC’s 24/7 trading method. He also mentioned that the persistent trading of BTC may likely pose more difficulty for most institutional investors with limited experience with any of the 5% assets class.