A Recent Survey Shows Financial Advisors Doubt Spot Bitcoin ETF Approval
A recent survey conducted by Bitwise Asset Management and VettaFi reveals that 61% of financial advisors do not expect the approval of a spot Bitcoin ETF in 2024. This is in stark contrast to the estimate of crypto enthusiasts, who believe there is an 88% likelihood of approval by January.
This discrepancy suggests that the market’s readiness for a spot Bitcoin ETF may be undervalued.
Advisors See Approved Spot Bitcoin ETF as a Catalyst
The survey also highlights a significant revelation from financial advisors: they view an approved spot Bitcoin ETF as a major catalyst. In fact, 88% of advisors interested in purchasing Bitcoin are waiting for post-ETF approval to make their move.
However, access to cryptocurrency remains a hurdle for many advisors, with only 19% indicating the capability to purchase crypto in client accounts. Nevertheless, the survey shows a strong commitment among those already invested in crypto, as 98% of them plan to maintain or increase their exposure in 2024.
Persistent Client Interest and Investment Preferences
The survey also indicates persistent client interest in crypto, with 88% of advisors receiving crypto-related queries last year. Furthermore, 59% of advisors note that their clients independently invest in cryptocurrency, suggesting a significant opportunity in held-away assets.
When it comes to investment preferences, advisors are increasingly focusing on crypto equity ETFs for their allocations in 2024. However, regulatory uncertainty (64%) and volatility (47%) remain the top concerns hindering wider adoption of crypto in portfolios. Interestingly, Bitcoin is now the preferred choice over Ethereum for 71% of advisors, marking a notable shift from the previous year.
Advisors Have Not Fully Priced in the Potential Impact
According to Bitwise CIO Matt Hougan, advisors who control a substantial portion of wealth in America have not fully priced in the potential impact of a spot Bitcoin ETF approval. There is a significant gap in expectations between advisors and those who closely monitor ETF developments. Additionally, nearly 90% of advisors state that they are waiting for an ETF before making a Bitcoin investment, indicating a high demand just below the surface.
Hot Take: Financial Advisors Skeptical About Spot Bitcoin ETF Approval
A recent survey reveals that financial advisors have doubts about the approval of a spot Bitcoin ETF in 2024. This contrasts sharply with the optimism among crypto enthusiasts. The survey highlights the potential undervaluing of the market’s readiness for such an ETF. It also shows that financial advisors see an approved spot Bitcoin ETF as a significant catalyst and are eagerly awaiting its approval before making their move into Bitcoin. However, access to cryptocurrency remains a challenge for many advisors, and regulatory uncertainty and volatility continue to hinder wider adoption of crypto in portfolios. Overall, financial advisors may not have fully considered the potential impact of a spot Bitcoin ETF approval.
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