Expect More Bitcoin ETF Rejections, Says BitGo's Belshe

• US SEC Might Reject Bitcoin ETF Applications, Says BitGo CEO
• Belshe Discloses SEC Concerns in Bloomberg Interview
• SEC May Require More Separation Before Approval
• Chances of ETF Approval in January
• Bitcoin Price Rally Following BlackRock's ETF Application

US SEC Might Reject Bitcoin ETF Applications, Says BitGo CEO

BitGo's CEO, Mike Belshe, has stated that the U.S. Securities and Exchange Commission (SEC) may very possibly dismiss a slew of spot Bitcoin$42,260 -0.64% (BTC) exchange-traded fund (ETF) applications. This perspective comes in light of the high hope broadly felt within the sector.

Belshe Discloses SEC Concerns in Bloomberg Interview

In a conversation with Bloomberg, Belshe disclosed that the SEC could dismiss current applications due to a lack of separation between exchanges and custody. The digital currency exchange, Coinbase (COIN), has been chosen as a custody partner by several potential ETF applicants.

SEC May Require More Separation Before Approval

The entity Coinbase carries many risks that are not fully understood, Belshe mentioned. It is entirely possible that the SEC may respond with a requirement for complete separation of those elements before proceeding.

Chances of ETF Approval in January

Several ETF analysts have projected that the likelihood of an ETF gaining approval in January is about 90%. Over time, the SEC has dismissed a number of applications, highlighting worries about possible market manipulation and inadequate customer protection.

Bitcoin Price Rally Following BlackRock's ETF Application

Fund manager BlackRock submitted an application for a spot Bitcoin ETF in June. Following the application, Bitcoin's price has surged by 45%, reaching $36,200 according to data from TradingView.

Edited by Jonathan Stoker