BitGo CEO Mike Belshe has expressed reservations about the approval of spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC) due to Coinbase’s integration.
Key Takeaways
- BitGo CEO, Mike Belshe, has expressed reservations about the potential approval of spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC) due to Coinbase’s multifaceted role in the crypto industry.
- Belshe believes that risks associated with Coinbase’s integration as both an exchange and custodian may not be fully understood, possibly leading to further rejections of Bitcoin ETF applications.
- He suggests that another round of rejections may be necessary to address concerns about market structure and the separation of exchanges from custody, similar to how the equity market operates.
- Coinbase’s role as an exchange, custodian, and broker-dealer simultaneously presents potential risks that require further examination.
Anticipation for Bitcoin ETF Approval
The global asset management industry is eagerly anticipating the approval of spot Bitcoin Exchange-Traded Funds (ETFs), with the potential to attract substantial capital and investment to the cryptocurrency market.
BitGo CEO Mike Belshe has voiced concerns regarding the approval of spot Bitcoin ETF applications by the SEC. He attributes these concerns to Coinbase’s unique position as both an exchange and a custodian.
Belshe suggests that the risks associated with Coinbase’s multifaceted role may not have been fully recognized by market analysts and regulators. This lack of understanding could potentially lead to further rejections of Bitcoin ETF applications.
Bitcoin ETF Approval Hindered By Coinbase Integration, Says BitGo CEO | Bitcoinist.comSummary
— Jones Meredith (@JonesMered186) November 18, 2023
🌐 Anticipation for Bitcoin ETF ApprovalAsset managers worldwide eagerly await approval of spot Bitcoin ETF.
Potential to drive significant capital into the crypto industry.
🛑 BitGo… pic.twitter.com/CIKqRWZ4Na
Coinbase’s Role as Exchange, Custodian, and Broker-Dealer
Belshe highlights Coinbase’s role as an exchange, custodian, and broker-dealer, expressing concerns about the risks inherent in this integrated model. He suggests that these risks need further examination before Bitcoin ETFs can gain approval.
While Belshe clarifies that Coinbase is not on the same level as the bankrupt crypto exchange FTX and its co-founder Sam Bankman-Fried, he suggests that they employ a similar playbook in terms of integrated functions.
To Conclude
BitGo CEO Mike Belshe has expressed reservations about the likelihood of the US Securities and Exchange Commission (SEC) approving spot Bitcoin ETF applications due to Coinbase’s integration as both an exchange and custodian.
