The U.S. SEC Likely to Approve Bitcoin ETF, Says TD Cowen
The U.S. Securities and Exchange Commission (SEC) is expected to approve a spot bitcoin exchange-traded fund (ETF) by the January 10 deadline as a “political necessity,” according to TD Cowen, an investment bank. The agency wants to establish its role as a crypto regulator before broader crypto legislation is considered by Congress. Additionally, the SEC wants to avoid losing a legal challenge to its refusal to approve bitcoin ETFs. This decision will also impact other similar filings from firms like BlackRock and Fidelity, who have also submitted spot bitcoin ETF applications.
Crypto Market Structure and Stablecoin Bills
Aside from the potential approval of spot bitcoin ETFs, attention has also been focused on two Republican-led bills. One bill aims to regulate stablecoins at the federal level, while the other addresses crypto’s market structure comprehensively. These bills have already passed the House Financial Services Committee but may face challenges in the Senate Banking Committee this year. However, TD Cowen believes there is an opportunity for a deal during the “lame duck” period after an election for a broader crypto market structure bill. The SEC’s leadership in investor protections will be crucial in getting the Senate and White House on board.
Hot Take: SEC Likely to Approve Spot Bitcoin ETFs
TD Cowen predicts that the SEC will approve spot bitcoin ETFs by next week, which has contributed to the recent rally in bitcoin’s price. If approved, these ETFs are expected to attract additional institutional investment into the crypto industry. However, it remains to be seen whether the SEC will meet the January 10 deadline for decision-making on ARK Investment and 21Shares’ applications. In addition, attention is also focused on Republican-led bills that aim to regulate stablecoins and address crypto market structure. The SEC’s role in these matters will be crucial, and there is potential for progress during the “lame duck” period.
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