BitGo CEO Raises Concerns: Will SEC Greenlight Bitcoin ETFs?

"SEC's Heightened Vigilance Delays Review of New ETF Applications Amidst Cryptocurrency Industry's Regulatory Concerns"

Cryptocurrency industry insiders have been closely monitoring regulatory developments, particularly in light of recent events such as the collapse of FTX and the subsequent legal troubles faced by its founder, Sam Bankman-Fried. The Securities and Exchange Commission (SEC) has demonstrated increased vigilance in its efforts to protect investors, which has included delaying the review of new exchange-traded fund (ETF) applications, including Hashdex’s spot Bitcoin ETF.

While industry analysts have expressed a general sense of optimism for a favorable decision in January, comments from Brian Belshe, CEO of cryptocurrency exchange BitGo, reflect a more cautious outlook. Belshe pointed out that major financial entities continue to choose Coinbase Custody as their custodian for ETFs, a strategy that was also adopted by FTX before its downfall. This approach has come under scrutiny as regulators aim to prevent market manipulation.

It is important to consider the backdrop against which these discussions are taking place. In June, BlackRock, the world’s largest asset manager, filed an ETF application with the SEC. This news resulted in a surge in the value of Bitcoin, reaching $36,200, as reported by TradingView. However, the SEC’s commitment to stringent oversight suggests that more Bitcoin ETF submissions may face rejection due to unresolved concerns surrounding market structure and investor safety.

It is worth noting that this article was generated with the support of artificial intelligence and has been reviewed by an editor to ensure accuracy and adherence to journalistic standards. For more information, please refer to our terms and conditions.

The cryptocurrency industry has been closely watching regulatory developments, especially in light of recent events such as the collapse of FTX and the subsequent legal troubles of its founder, Sam Bankman-Fried. The SEC has shown increased vigilance in its efforts to protect investors, which has included delaying the review of new ETF applications like that of Hashdex’s spot Bitcoin ETF.

Despite a general sense of optimism among industry analysts for a favorable decision in January, Belshe’s comments reflect a more cautious outlook. He highlighted that key financial entities continue to select Coinbase Custody for their ETFs, a strategy mirrored by FTX before its downfall. This approach has come under scrutiny as regulators aim to prevent market manipulation.

The backdrop to these discussions includes BlackRock’s ETF application from June, which was met with a surge in BTC value, reaching $36,200 as reported by TradingView. However, the SEC’s commitment to stringent oversight suggests that more Bitcoin ETF submissions may face rejection due to these unresolved issues around market structure and investor safety.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Martin Reid

Martin Reid

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