Politics are behind spot Bitcoin ETF delays, BTC price to re-test record highs in the next 18 months – Mike Belshe
Political Pressure Stalling Bitcoin Spot ETF Approval, According to BitGo CEO
The approval of a Bitcoin spot ETF is being delayed due to political pressure, according to Mike Belshe, CEO of BitGo. Despite this setback, Belshe remains optimistic that Bitcoin’s price will re-test its all-time high of $69,000 in the next 18 months.
Several major financial institutions, including BlackRock, Fidelity, and VanEck, are competing to list the first spot-traded Bitcoin ETF in the U.S. While the Securities and Exchange Commission (SEC) approved a Bitcoin-linked futures ETF in October 2021, the current focus is on spot Bitcoin ETFs, which hold Bitcoin as the underlying asset, providing investors with exposure to the actual price of Bitcoin.
The confidence of investors in the approval of such funds received a boost when BlackRock, the world’s largest asset manager, filed an application on June 15. BlackRock has a near-perfect record of ETF application approvals, leading many to believe that it is only a matter of time before the SEC grants approval. According to Bloomberg Intelligence, the asset manager has filed for around 550 ETFs and has only been rejected once.
In addition, Grayscale recently won a legal battle against the SEC when the D.C. Circuit Court of Appeals ruled that some of the regulator’s arguments in rejecting Bitcoin ETF applications were “arbitrary and capricious.”
Previous applications for spot Bitcoin ETFs faced rejection or had to be withdrawn due to the SEC’s concerns. The SEC has repeatedly postponed its decision on spot Bitcoin ETF applications, including those from BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise, and Valkyrie Digital Assets. The comment periods for these applications were extended to gather more public feedback, and the SEC can take up to 240 days to finalize its decision.
Belshe believes that it is not regulation but political pressure that is hindering the approval of spot Bitcoin ETFs. He suggests that regulators should simply apply the rulebook without ambiguity. However, he argues that the reluctance of the SEC and Gary Gensler to approve a spot Bitcoin ETF is due to political influences rather than a matter of law.
The political pressure has made it challenging to predict when an ETF will receive approval. Belshe addresses the uncertainty surrounding who is making the final decisions and suggests that multiple parties may be involved. Despite this, he believes that an ETF will eventually be approved.
There are speculations that forces inside Washington, including U.S. Senator Elizabeth Warren, are contributing to the delay. Belshe points out that shortly after President Biden was elected, Senator Warren publicly expressed her intention to “unwind all that crypto stuff” and encouraged the President to do the same. Belshe suggests that Senator Warren is influential in the SEC and the Biden administration.
Belshe emphasizes the importance of having predictable and understandable rules for the crypto industry to maintain the U.S.’s position as a leader in the global economy. He also mentions the issue of regulatory capture, where industry has undue influence in the regulatory and legislative processes, citing the banking industry as an example.
Regarding Bitcoin’s price outlook, Belshe believes that in the next 18 months, Bitcoin will re-test its previous all-time high of $69,000. However, despite this optimistic forecast, he expresses hope that it doesn’t happen. The video provides more insights into Belshe’s reasons for this outlook.
Belshe concludes by highlighting the positive aspects of the bear crypto market. Despite the challenges, he sees opportunities for significant progress in the industry.
Please note: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided, but neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes and does not constitute a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author do not accept responsibility for any losses or damages arising from the use of this publication.
