In a recent interview with Bloomberg, Mike Belshe, CEO of BitGo, a prominent cryptocurrency exchange, expressed optimism regarding the approval of a Bitcoin Exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). However, Belshe cautioned that challenges lie ahead in the form of potential rejections before the positive news emerges.
BitGo: Navigating Highs in Bitcoin’s Market
As of the interview on November 16, the price of Bitcoin stands at $36,508, and Belshe believes that all signs point towards a favorable outcome for a Bitcoin ETF. He based his positive outlook on ongoing discussions between companies seeking approval for Bitcoin ETFs and the SEC.
Moreover, despite his optimism, Belshe emphasized the necessity of improving the market structure before the SEC grants final approval for a Bitcoin ETF. He highlighted the SEC’s requirement to separate cryptocurrency exchanges from custodians as a critical condition that must be addressed for approval.
Belshe referred to Sam Bankman-Fried, the former CEO of the now-defunct FTX exchange. He mentioned Bankman-Fried’s efforts to make FTX a multifaceted operation. Bankman-Fried had advocated for regulatory compliance and efficiency by taking on various functions in the cryptocurrency industry.
Therefore, the anticipation surrounding the potential approval of a spot in the Bitcoin ETF has led to a surge in fees on the Bitcoin blockchain. On November 16, transaction fees on the Bitcoin blockchain skyrocketed to $11.6 million. This represents a substantial 746% increase in the average transaction fee compared to the same period a year ago.
Furthermore, despite the challenges and increased fees, Bitcoin remains steady, reaching 18-month highs and surpassing its bear market trading range. This information comes from a market analysis by Cointelegraph.
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Moreover, 12 asset management firms are currently eagerly awaiting the outcomes of their Bitcoin ETF applications. Bloomberg analyst James Seyffart predicts a 90% chance of approvals by January 10, 2024. The cryptocurrency community will closely monitor developments as the industry navigates the complexities of regulatory approval for Bitcoin ETFs.