BitGo CEO Mike Belshe believes that it is highly probable that the U.S. Securities and Exchange Commission (SEC) will reject several spot bitcoin (BTC) exchange-traded fund (ETF) applications, despite widespread optimism in the industry.

In an interview with Bloomberg, Belshe stated that the SEC may reject the current applications on the grounds that exchanges and custody are not separated. Coinbase (COIN) has been chosen by multiple applicants as the custody partner for a potential ETF.

“There are a lot of risks in that entity Coinbase that are not understood,” said Belshe. “I think that the SEC could quite likely come back and say: ‘Nope, you’ve got to separate out those things fully before we move forward.'”

Several ETF analysts have stated that there is approximately a 90% chance of an ETF being approved in January. The SEC has rejected numerous applications over the years, citing concerns about potential market manipulation and a lack of customer protection.

Fund manager BlackRock submitted an application for a spot bitcoin ETF in June. Since then, the price of BTC has surged by 45% to $36,200, according to TradingView data.