Majority of Financial Advisors Not Optimistic About Spot Bitcoin ETF Approval, Survey Finds
A recent survey conducted by Bitwise, a crypto asset manager, and VettaFi, a data and analytics platform, reveals that most financial advisors do not believe that US federal regulators will approve a spot Bitcoin (BTC) exchange-traded fund (ETF).
The US Securities and Exchange Commission (SEC) is set to make a decision on January 10th regarding the applications of several financial firms including BlackRock, VanEck, Valkyrie Investments, and Fidelity to offer a spot ETF for Bitcoin.
Low Expectations for Approval
Despite analysts from Bloomberg ETF predicting a 90% chance of approval, the survey shows that less than half of financial advisors are optimistic about the spot Bitcoin ETF getting the green light.
However, even with low expectations, 88% of financial advisors interested in investing in Bitcoin indicate that they are waiting for regulatory approval before making their move.
Limited Access to Crypto
The survey also reveals that only 19% of respondents have the ability to buy crypto in client accounts, suggesting limited access to digital assets among financial advisors.
However, among those who currently allocate funds to crypto for their clients, 98% plan to either maintain or increase their exposure in 2024.
Financial Advisors’ Perspective
Bitwise CIO Matt Hougan points out that there is a significant gap in expectations between financial advisors and those closely monitoring ETF developments. He also highlights the high demand for a spot Bitcoin ETF among advisors.
“There’s a massive gap in expectations between advisors and those who monitor ETF developments for a living. Couple that with the fact that almost 90% of advisors say they’re waiting for an ETF before making a bitcoin investment, and you see a lot of demand bubbling just below the surface,” says Hougan.
Hot Take: Financial Advisors Remain Cautious About Spot Bitcoin ETF Approval
A recent survey conducted by Bitwise and VettaFi reveals that financial advisors are not optimistic about the approval of a spot Bitcoin ETF by US federal regulators. Despite analysts predicting a high chance of approval, less than half of the surveyed advisors are positive about the ETF. However, 88% of those interested in investing in Bitcoin are waiting for regulatory approval. The survey also highlights limited access to crypto among financial advisors, with only 19% able to buy crypto in client accounts. Nevertheless, among those who currently allocate funds to crypto, 98% plan to maintain or increase their exposure in 2024.
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