Political Momentum Could Push SEC Approve Bitcoin ETF, says TD Cowen

Key Points:

• The SEC approve bitcoin ETF by the Jan. 10 deadline as a “political necessity,” according to TD Cowen
• The SEC’s approval is driven by the need to establish its authority as the primary crypto regulator before potential congressional intervention. SEC approve Bitcoin ETF shows the agency is actively managing the rapidly growing market.
• The threat of lawsuits looms large if the SEC continues to reject applications. Approving at least one ETF mitigates this risk and shows a willingness to engage with the industry.

The U.S. Securities and Exchange Commission SEC approve bitcoin ETF by the January 10 deadline or risk losing its regulatory grip on the burgeoning crypto market.

Read more: Spot Bitcoin ETF Approval Timelines and Key Dates

SEC Approve Bitcoin ETF by Jan. 10: Power Play or Legal Hedge?

According to investment bank TD Cowen, the U.S. SEC is poised to approve a spot bitcoin ETF by the January 10 deadline. This decision, viewed as a “political necessity,” signals the agency’s intent to establish its regulatory authority in the booming crypto market.

“The clock is ticking for the SEC, and approving a spot bitcoin ETF represents a strategic move,” explains TD Cowen’s Washington Research Group, led by Jaret Seiberg. “It not only solidifies the SEC’s role in regulating crypto, but also avoids potential legal challenges associated with denying such applications.”

Crypto Market Braces for January 10: Bitcoin ETFs on the Precipice

The January 10 deadline coincides with the final decision date for Cathie Wood’s ARK Investment and 21Shares, the first applicants for a spot bitcoin ETF. However, the SEC could choose to rule on applications from other firms like BlackRock and Fidelity simultaneously.

This anticipated green light from the SEC has fueled optimism in the crypto industry. Bitcoin’s price has steadily climbed in recent months, reaching around $45,000, largely driven by the expectation of increased institutional investment through spot ETFs.

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