Coinbase Custody is pessimistic, BitGo CEO: Bitcoin spot ETF will face another round of delays

BitGo CEO Mike Belshe, in an interview with Bloomberg, expressed optimism about a Bitcoin spot ETF but still believes that structurally ETFs may not gain approval from the SEC.

BitGo CEO: Bitcoin Spot ETF Likely to Face Another Round of Delays

Despite expressing optimism towards a Bitcoin spot ETF and noting that the goal is getting closer, Mike Belshe mentioned that BitGo is currently collaborating with issuers and other relevant parties. However, when the next round of review dates arrives, the SEC is likely to once again delay the decision.

He stated:

We still need to focus on the topic of market structure, which is well known to be Gary Gensler's top concern. We must separate trading and custody, just as it is done in the CFTC and equity markets.

FTX Collapse Once Again Proves the Need to Separate Banking, Trading, and Custody

Mike Belshe stated:

What SBF advocated for in Congress 15 months ago, essentially saying that FTX could handle all business and be great and efficient, now clearly has very different interpretations across the board. Many issuers of Bitcoin spot ETFs have custody services provided by Coinbase. I'm not saying Coinbase is FTX, but they both handle trading and custody services, which poses many unknown risks. I believe the SEC may likely reject a Bitcoin ETF on this basis.

Of course, Mike Belshe specifically mentioned their custody business at the end, emphasizing that BitGo has a ready-made solution that is 100% focused on custody and does not involve any trading operations.