Almost 90% of financial advisors plan to buy Bitcoin post spot BTC ETF approvals

  • Bitwise conducted a poll to determine advisors’ views on spot Bitcoin ETF approvals.
  • Findings reveal a significant disparity between financial advisors and those who monitor spot BTC ETF developments for a living.
  • While only 39% of financial advisors anticipate spot bitcoin ETF approval in 2024, specialists cling to 90% January approval chance.

Bitwise Asset Management performed a survey on themes ranging from financial advisors’ current crypto allocations and preferred investment vehicles to Bitcoin price predictions, and the prevailing spot BTC exchange-traded funds (ETFs) mania. The findings of the research point to clear interest in cryptocurrency among clients, as well as access challenges among advisors, and the thicket that is unclear regulation and volatility in the crypto market.

Also Read: VanEck publishes Bitcoin ETF ad after BitWise and Hashdex as SEC settles on cash creates

Bitwise explores differences in perception between financial advisors and ETF specialist

Bitwise CIO Matt Hougan conducted a survey alongside VettaFi data analytics’ Chief Marketing Officer Jon Fee to determine the differences and similarities (if any), between experts in the financial space and those in the ETF sector. “If you want to gauge where crypto is going, you need to talk to the professionals who control roughly half the wealth in America,” said Hougan.  

Per the Bitwise executive, however, there remains a massive gap in expectations between advisors and those who monitor ETF developments for a living. According to Hougan, this expectation could translate into demand pressure, with the financial advisors acknowledging that there was still some upside potential to the spot BTC ETF approval.

The big takeaway from these advisors this year is that, for all the hoopla surrounding the potential approval of a spot bitcoin ETF; it doesn’t appear to be priced in.

Key takeaways from the Bitwise survey

Bitwise poll revealed that if the US SEC approves a spot bitcoin ETF, it could catalyze increased demand among investors beyond expectation.

Nevertheless, the survey indicated a clear contrast between the sentiments of financial advisors and those of ETF specialists. For starters, less than half (39%) of all advisors expect a spot bitcoin ETF in 2024. This is a huge difference from the 90% chances Bloomberg’s ETF specialists James Seyffart and Eric Balchunas continue to cling to.

The financial advisors also expressed interest in crypto equity ETFs as a top choice in terms of crypto exposure. Among them, 71% prefer BTC to Ethereum (ETH), with the turnout marking a significant increase from a previous survey that indicated 53%.

Besides the contrast, the common denominator between the two categories of respondents is that both believe an approval, if it comes, could catalyze the market. With this belief, 88% of the financial advisors expressed interest in acquiring BTC, but choose to wait until after a spot bitcoin ETF is approved.

Further, there is concern on matters of access, with only 19% being able to buy crypto in client accounts. Meanwhile, 98% of advisors with crypto exposure in client accounts intend to maintain or grow their portfolio this year.

Unlike the Matrixport report, Bitcoin price has not reacted to the findings of the Bitwise poll, and continues to push north, up 3% in the last 24 hours to trade for $43,956 as of the time of this writing. 

BTC/USDT 1-day chart

It is worth it to note that the survey featured 400 financial advisors, comprising independent registered investment advisors, broker-dealer representatives, financial planners, and wirehouse representatives from across the US.  

Also Read: Analyzing sell the news event if an approval does come

Crypto ETF FAQs

An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.

Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.

Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.

Source link