BitGo CEO Mike Belshe expressed his belief that despite widespread optimism in the cryptocurrency industry, the US Securities and Exchange Commission (SEC) will likely reject spot Bitcoin (BTC) exchange-traded fund (ETF) applications.
In a recent interview with Bloomberg, Belshe suggested that the SEC may reject existing applications due to the lack of distinction between exchanges and depository institutions. Several applicants had selected Coinbase as a custodial partner for a potential ETF.
Belshe expressed concern about the risks associated with Coinbase, saying, “There are a lot of risks with Coinbase that are not understood.” Belshe continued his words as follows:
“I think the SEC will probably go back and say 'no, you need to completely separate these before we go any further.'”
The SEC has a history of rejecting large numbers of applications, even though many ETF analysts predicted a 90% chance of an ETF being approved in January. The SEC postponed a decision on Hashdex's futures-spot hybrid ETF application yesterday. Today, Franklin Tempton needs to make a decision on the Bitcoin Spot ETF application, which will most likely result in postponement.
*This is not investment advice.
