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Mike Belshe, CEO of BitGo, predicts additional challenges for the approval of spot Bitcoin ETFs within the United States. His insights, shared throughout a Bloomberg interview, spotlight unresolved market construction points as a major barrier. Despite some optimism within the crypto market concerning the eventual approval of those ETFs, Belshe’s outlook suggests a special situation. The U.S. Securities and Exchange Commission (SEC) continues to intently scrutinize these purposes, emphasizing investor safety from market manipulation.

Bitcoin ETFs Face Intensified SEC Scrutiny

The collapse of FTX and the following authorized troubles of its founder, Sam Bankman-Fried, have forged a protracted shadow over the crypto trade. Bankman-Fried’s try to affect U.S. crypto rules didn’t yield the specified outcomes.

Now, with a possible 115-year sentence looming over him for fraud and misappropriation prices, the trade faces elevated skepticism. This skepticism extends to corporations like Coinbase Custody, utilized by many as a custodial resolution for their ETF purposes. Belshe notes parallels between FTX’s methods and people employed by Coinbase, albeit clarifying that Coinbase isn’t being likened to FTX’s malpractices.

Significantly, main monetary establishments usually are not resistant to this scrutiny. BlackRock and Franklin Templeton, amongst others, have chosen Coinbase Custody for their cryptocurrency storage. This selection highlights a pattern within the trade the place the strains between exchanges and custodians are more and more blurred. The SEC’s concern facilities across the potential dangers posed by this lack of separation, which could result in the rejection of a number of ETF purposes.

SEC Postpones Decision on Hashdex BTC ETF

The SEC’s unwavering vigilance is obvious in its latest actions. For occasion, the choice on Hashdex’s application for a spot Bitcoin ETF within the U.S. was postponed in mid-November 2023. This transfer underscores the regulator’s dedication to making sure strong investor safety measures are in place. Consequently, the trade is left to navigate these regulatory challenges, which present no indicators of abating.

Read Also: CoinShares Analyst Predicts BTC Hitting $81,000 Amid Bitcoin Spot ETF Speculations

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Maxwell is a crypto-economic analyst and Blockchain fanatic, enthusiastic about serving to folks perceive the potential of decentralized expertise. I write extensively on matters equivalent to blockchain, cryptocurrency, tokens, and extra for many publications. My aim is to unfold information about this revolutionary expertise and its implications for financial freedom and social good.

The introduced content material could embrace the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty for your private monetary loss.