Crypto Skeptics Remain Unconvinced of Bitcoin ETFs, Deutsche Bank Survey Shows
A recent survey conducted by Deutsche Bank reveals that crypto skeptics are not swayed by the availability of bitcoin exposure through exchange-traded funds (ETFs). Since the launch of these ETFs on January 11, the price of bitcoin has dropped approximately 20% to around $39,000. According to Marion Laboure, an analyst at Deutsche Bank based in London, institutions have been slow to adopt these new funds in their portfolios, and retail investors are still not fully convinced of their necessity.
The survey polled 2,000 consumers across the United States, United Kingdom, and Europe after the Securities and Exchange Commission (SEC) approved the ETFs earlier this month. The results indicate that over a third of respondents believe bitcoin will fall below $20,000 by the end of this year. Additionally, more than half of participants expressed the belief that a “major cryptocurrency” will completely collapse within the next two years.
Lack of Understanding and Negative Sentiment
Deutsche Bank’s survey findings highlight a lack of understanding among consumers when it comes to cryptocurrencies. Two-thirds of participants possess minimal or no understanding of digital assets. Laboure suggests that this negative sentiment may be influenced by past events such as the collapse of FTX in 2022 and the Securities and Exchange Commission’s lawsuits against Binance and Coinbase.
Potential Tailwinds for Bitcoin
Despite bitcoin’s recent sell-off, Laboure believes that there are potential positive factors on the horizon. These include an upcoming SEC decision on spot ether ETFs in May and the Bitcoin halving expected in April. She asserts that as traditional financial players enter the market, the crypto world is gradually becoming more institutionalized. The evolving ETF landscape and the participation of institutional players are contributing to the maturation of cryptocurrencies as an established asset class.
Hot Take: Crypto Skepticism Persists Despite Bitcoin ETFs
The launch of bitcoin exchange-traded funds (ETFs) has not managed to change the minds of crypto skeptics, according to a Deutsche Bank survey. The survey findings reveal that institutions have been slow to adopt these funds, and retail investors remain unconvinced of their value. Over a third of respondents believe bitcoin will drop below $20,000 by the end of this year, while more than half anticipate the collapse of a major cryptocurrency within the next two years. The survey also highlights a lack of understanding among consumers when it comes to digital assets. However, despite recent price fluctuations, there are potential positive developments on the horizon for bitcoin, including upcoming SEC decisions and increased institutional participation in the crypto market.
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