Bitcoin ETF

Spot

<p>The post <a href="https://coinpedia.org/news/spot-bitcoin-etf-approvals-td-cowen-cites-political-necessity-for-sec-action/">SEC Approval for Spot Bitcoin ETFs Will Be a Political Necessity: TD Cowen</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>TD Cowen, a leading American investment bank, suggests that the US Securities and Exchange Commission (SEC) will likely approve <a href="https://coinpedia.org/news/bitcoin-bulls-eye-70250-as-analysts-predict-price-surge-amid-etf-anticipation/">spot Bitcoin ETFs</a> by January 10. TD Cowen calls this a “political necessity,” highlighting the intertwined relationship between policy and finance and indicating a crucial period of January 4.</p> 
<p>Read on to know exactly what this means. </p> 
<h2 class="wp-block-heading" id="h-is-the-sec-about-to-act-now">Is the SEC About to Act Now?</h2> 
<p>TD Cowen explains the SEC’s possible motivations. With Congress gearing up to discuss cryptocurrencies, the SEC wants to establish itself as a capable regulator in the crypto space. Avoiding any missteps with Bitcoin ETFs is crucial for maintaining its reputation.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">JUST IN: SEC will approve spot <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> ETFs by the January 10 deadline as a “political necessity”, says $15 billion TD Cowen. <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f440.png" alt="👀" class="wp-smiley" style="height: 1em; max-height: 1em;"></p>— Bitcoin Magazine (@BitcoinMagazine) <a href="https://twitter.com/BitcoinMagazine/status/1742299175188832463?ref_src=twsrc%5Etfw">January 2, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<h2 class="wp-block-heading" id="h-market-expectations-and-trends">Market Expectations and Trends </h2> 
<p>Given the buzz around <a href="https://coinpedia.org/price-prediction/bitcoin-price-prediction/">Bitcoin</a> and the trend of acting on rumors, the SEC’s approval of Bitcoin ETFs in the near term seems probable. The Ark Invest/21Shares Spot Bitcoin ETF, led by <a href="https://coinpedia.org/news/ark-invest-leads-race-for-bitcoin-etf-approval-ahead-of-sec-deadline/">Cathie Woods</a>, is seen as an indicator of the SEC’s leanings.</p> 
<p>To ensure fairness, TD Cowen suggests the SEC might consider a joint approval method. This approach would help the SEC avoid any appearance of favoritism.</p> 
<p>Also Read: <a href="https://coinpedia.org/news/secs-decision-on-bitcoin-etf-an-analyst-gives-a-closer-look-and-unpacks-the-latest-ongoing-developments/">Are People Against Bitcoin Spot ETFs? Public Feedback Rolls In as SEC Approval Looms</a></p> 
<h2 class="wp-block-heading" id="h-understanding-the-odds-of-approval">Understanding the Odds of Approval</h2> 
<p>Contrary to the bullish sentiment surrounding ETF approvals, Vetle Lunde from <a href="https://k33.com/research/articles/all-time-high-cme-premiums-ahead-of-etf-verdict">K33 Research</a> offers a different perspective. Lunde believes there’s a 75% chance traders might “sell-the-news” once the ETF is approved. However, there’s also a cautious 20% chance the market could see a positive rally post-approval.</p> 
<p>This underscores the psychological dynamics at play, highlighting a notable exposure of traders and an increased demand for derivatives as the SEC’s decision looms.</p> 
<h2 class="wp-block-heading" id="h-gop-s-crypto-policy-bills"><strong>GOP’s Crypto Policy Bills</strong> </h2> 
<p>The crypto community is also keeping an eye on two bills proposed by Republicans. One bill focuses on regulating stablecoins at the federal level, while the other addresses the broader crypto market. Despite passing one committee, their fate in the Senate Banking Committee remains uncertain.</p> 
<p>TD Cowen suggests that after elections, there’s a “lame duck” period that might be a good time for discussions and compromises on comprehensive crypto legislation.</p> 
<p><strong>Stablecoins: A Backup Plan?</strong> </p> 
<p>TD Cowen views the bill about stablecoins as a possible alternative. If the broader regulations face challenges, this bill could become more prominent. Its success, however, depends on political negotiations and consensus.</p> 
<p>Read More: <a href="https://coinpedia.org/news/bitcoin-bulls-be-ready-to-pay-more-as-funding-rate-jumps-to-66/">Bitcoin Bulls Pay Premium as Bitcoin Funding Rates Hit New Highs: Is an ETF Really Worth It?</a></p>

SEC Approval for Spot Bitcoin ETFs Will Be a Political Necessity: TD Cowen

Table of Contents

CoinPedia News

Other articles published on Jan 3, 2024

Bitcoin Breaks Through Securities Barrier: Registered Funds Want Exposure To BTC

Fidelity files registration of securities for its Bitcoin ETF with the SEC

Bitcoin (BTC) Price Could Slide Below $40,000 if Bulls Fail to Defend These Crucial Levels

BTC’s 20-month high: exploring Bitcoin’s potential rally

5 OG Crypto Coins That Can Pump in the 2024 Bull Run

Lawsuit Highlights Copyright Challenges in the Age of AI News Generation

Join our free newsletter for daily crypto updates!