Former Coinbase Executive Does Not Expect Approval for Spot Bitcoin ETFs in 2023

• The possibility of a Spot Bitcoin ETF has been a long-standing dispute between Bitcoin enthusiasts and the Securities and Exchange Commission (SEC) for over a decade.
• The founder of Blockchain Ireland is waiting for the agency to evaluate the situation for the rest of 2023, which leads him to predict that approvals will come next year.
• The SEC has chosen to postpone decisions on ETF applications from BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise, and Valkyrie until mid-October.

A former Coinbase executive is not among the investors who trust the possibility of SEC approving spot Bitcoin ETFs in October; 2024 is more likely!

Former Coinbase Executive Talks About Spot Bitcoin ETFs

The possibility of a Spot Bitcoin ETF has been a long-standing dispute between Bitcoin enthusiasts and the Securities and Exchange Commission (SEC) for over a decade. While Bitcoin enthusiasts celebrated Grayscale’s recent legal victory, the industry is still not closer to winning this battle, despite the SEC being forced to review the company’s application due to its previous rejection.

As another blow, Lory Kehoe, the former Coinbase Director who is now the founder and President of Blockchain Ireland, extinguished the remaining optimism.

Kehoe poured cold water on the possibility of an upcoming ETF approval, stating that the SEC is not afraid to “stick to their guns.” Instead, the founder of Blockchain Ireland expects the agency to evaluate the situation for the rest of 2023, which leads him to predict that approvals will come next year. Kehoe said the following;

“In my opinion, considering further analysis and attention, and the fact that an evaluation will be made for the rest of this year, it is more likely to happen and have a higher chance of approval in 2024.”

These comments present a contrasting view to analysts Eric Balchunas and James Seyffart. These analysts raised the probability of spot Bitcoin ETF approval from 65% to 75% at the end of August. Balchunas noted that the Grayscale decision was unanimous and definitive, leaving the SEC with “very little wiggle room.”

Since then, Bitcoin has regained its Grayscale gains, and market sentiment has improved. Similarly, the SEC has chosen to postpone decisions on ETF applications from BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise, and Valkyrie until mid-October. Bitwise later withdrew its application.

SEC Continues Its Decision

A spot Bitcoin ETF would enable the buying and selling of Bitcoin without using a cryptocurrency exchange. This would likely increase market demand and eliminate security concerns, especially regarding the safe custody of BTC.

Despite years of lobbying by the cryptocurrency industry, the SEC has consistently rejected all spot Bitcoin ETF applications since 2013, fueling suspicions of the regulator harboring institutional bias against the digital asset sector.

In June 2022, Grayscale filed a lawsuit against the SEC for rejecting its application to convert the Grayscale Bitcoin Trust into a spot ETF. Last month, the United States Court of Appeals forced the SEC to reconsider the application and determined that the rejection was “arbitrary and capricious.”

The court decision initially increased market sentiment and led to a short-lived Bitcoin price rally. It also brought hope that many pending spot Bitcoin ETF applications would now be approved. However, Bitcoin enthusiasts are still waiting as per the SEC’s request.