Bitcoin

Unlocking the Potential: Brace for Bitcoin ETF Approval Rollercoaster!

Is a Bitcoin ETF on the Horizon? BitGo CEO Weighs In

In a recent interview with Bloomberg, Mike Belshe, CEO of cryptocurrency exchange BitGo, expressed optimism about the approval of a spot Bitcoin exchange-traded fund (ETF). However, he also highlighted the challenges that lie ahead.

Belshe revealed that based on ongoing discussions between firms seeking Bitcoin ETF approval and the United States Securities and Exchange Commission (SEC), the outlook for approval is positive. He believes that approval is imminent, but cautioned that there may be further rejections before the positive news comes.

One of the key factors that Belshe emphasized is the need to improve the market structure before the SEC grants its approval. He pointed out that the SEC has been clear about the separation of crypto exchanges from custodians, and this condition must be addressed before any ETF approvals are granted.

Belshe also referenced Sam Bankman-Fried, the former CEO of the now-defunct crypto exchange FTX, who advocated for regulations and proposed taking on multiple functions within the industry. Belshe believes that addressing these regulatory concerns and creating an efficient market structure will be crucial for the success of a Bitcoin ETF.

The excitement surrounding the potential approval of a spot Bitcoin ETF has led to a significant increase in fees on the Bitcoin blockchain. On November 16, transaction fees reached $11.6 million, marking a 746% increase compared to the previous year.

Despite the challenges, Bitcoin has been holding steady near 18-month highs and has surpassed its bear market trading range, according to market analysis by Cointelegraph. This positive trend has also attracted the attention of asset management firms, with 12 firms eagerly awaiting the outcomes of their Bitcoin ETF applications.

Bloomberg analyst James Seyffart predicts a 90% chance of approvals for Bitcoin ETFs by January 10, 2024.

While the road to a Bitcoin ETF may have its obstacles, the overall sentiment among industry experts remains positive. With ongoing discussions and efforts to improve market structure, it seems that a Bitcoin ETF may soon become a reality.

Sources: Bloomberg, Cointelegraph

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