BitGo CEO anticipates U.S. SEC rejection of spot Bitcoin ETF applications

BitGo CEO Mike Belshe

17th November 2023 – (New York) BitGo CEO Mike Belshe has expressed his belief that the U.S. Securities and Exchange Commission (SEC) is likely to reject a series of spot bitcoin exchange-traded fund (ETF) applications, despite the optimism within the industry. In an interview with Bloomberg, Belshe highlighted the potential grounds for rejection, pointing out the lack of separation between exchanges and custody in the current applications. Coinbase has been selected as a custody partner by several applicants seeking to establish an ETF.

Belshe emphasized the risks associated with Coinbase as a single entity, stating, “There are a lot of risks in that entity Coinbase that are not understood. I think that the SEC could quite likely come back and say: ‘Nope, you’ve got to separate out those things fully before we move forward.'”

While some ETF analysts have expressed a 90% chance of ETF approval in January, the SEC has historically rejected numerous applications due to concerns over market manipulation and insufficient customer protection.

BlackRock, a leading fund manager, filed an application for a spot bitcoin ETF in June. Since then, the price of BTC has experienced a 45% rally to reach $36,200, as per TradingView data.