Bitcoin ETF: Is Its Swift Approval a "Political Necessity" for the SEC?

January 10th is the deadline to make a decision on Bitcoin Spot ETFs. The United States Securities and Exchange Commission must rule on the fate of these new financial instruments well before this deadline. According to investment bank TD Cowen, meeting this deadline is seen as a “political necessity“.

Bitcoin ETF, green light before January 10th?

Yesterday, journalist Eleanor Terrett (Fox Business) pointed out the inability to deliver a verdict at the beginning of the week. Indeed, SEC staff were granted holiday leave to spend the end-of-year festivities in peace.

JUST IN: SEC will approve spot #Bitcoin ETFs by the January 10 deadline as a “political necessity”, says $15 billion TD Cowen. 👀

— Bitcoin Magazine (@BitcoinMagazine) January 2, 2024

Apparently, the predictions regarding the approval date of Bitcoin Spot ETFs are picking up early this year. According to The Block, investment bank TD Cowen believes that the SEC is compelled to decide the fate of bitcoin (BTC) associated trackers before next Wednesday. Otherwise, it would be making a political misstep that could tarnish its image forever.

“For us, it’s a political necessity, because the agency needs to solidify its role as a crypto regulator before Congress considers broader legislation on cryptography. We also think the agency does not want to lose a legal challenge over its refusal to approve bitcoin ETFs,” notes the TD Cowen Washington research team.

Why is the date of January 10, 2023, so significant? In fact, it’s the deadline by which the crypto regulator must decide (accept or reject) the applications from Cathie Wood’s ARK Investment (predicting that bitcoin could reach 1 million dollars) and 21 Shares. Among the 14 applicants for Bitcoin Spot ETFs, these two were the first to file their claims.