BitGo CEO Predicts More Bitcoin ETF Rejections Amid Regulatory Uncertainties

#BitGo CEO Mike Belshe is warning that the U.S. Securities and Exchange Commission (SEC) is likely to reject a series of spot bitcoin (BTC) exchange-traded fund (ETF) applications due to concerns surrounding the separation of exchanges and custody services. Belshe highlighted the potential risk factors within entities like Coinbase, frequently chosen as a custody partner for #ETH applicants. He suggests that the SEC might insist on a full separation of exchanges and custody services before considering approval, emphasizing the need for a clearer understanding of the risks involved.

Despite an overall industry optimism with approximately a 90% chance of approval in January, regulatory hurdles persist. The SEC has a history of rejecting ETF applications, citing worries about market manipulation and inadequate customer protection. Notably, fund manager BlackRock's application for a spot bitcoin ETF filed in June faces these challenges, even as the price of BTC has surged by 45% to $36,200 since then, according to TradingView data.

#ETH #WhaleAlert #BTC $ETH $BTC $BNB