About 40% of Financial Advisors Believe Bitcoin ETF Will be Available in 2024
A recent poll conducted by Bitwise revealed that around 40% of financial advisors are confident that a Bitcoin exchange-traded fund (ETF) will be available to American investors by 2024. However, the majority of professionals who advise clients on investments are not as certain. This outcome is interesting considering that many market observers believe the approval of a Bitcoin ETF by the Securities and Exchange Commission (SEC) is inevitable.
Advisors Waiting for Bitcoin ETF Approval
The survey also found that although most advisors do not believe a Bitcoin ETF will be approved this year, 88% of respondents who are interested in purchasing Bitcoin for their clients are waiting for an ETF to become available. A spot Bitcoin ETF would allow investors to gain exposure to the cryptocurrency market without the need to directly own and hold Bitcoin, eliminating the complexities associated with hardware wallets and private keys.
Clients Interested in Crypto Investments
The survey results also indicated that approximately 60% of respondents stated that their clients have been exploring crypto investments outside of their relationship with financial advisors. This trend is viewed as promising for firms considering offering crypto products. Although the percentage of clients allocating funds to crypto has slightly decreased from previous years, it remains higher than in 2020 and 2019.
Bitwise’s Stake in Bitcoin ETF Approval
Bitwise has a vested interest in the approval of a Bitcoin ETF. The company first filed an application for the Bitwise Bitcoin ETF Trust with the SEC in 2019 but was rejected. It then refiled an application in 2021, which was also turned down. However, Bitwise has amended its application and refiled it in November 2023 under the name “Bitwise Bitcoin ETF.” The company has taken issue with the SEC’s rejections and hopes that this time it will succeed.
SEC Requirements for Bitcoin ETF Approval
Since the survey was conducted, additional details have emerged regarding the SEC’s requirements for approving a Bitcoin ETF. Applicants must disclose authorized participants in their S-1 registrations, and there is a preference for cash settlement rather than settlement in Bitcoin. Major applicants, including BlackRock, Fidelity, and Ark, have updated their applications to address these requirements. Furthermore, Grayscale, Ark, VanEck, and Valkyrie have received approval from their respective exchanges to begin trading once the regulator gives the green light.
Hot Take: Uncertainty Surrounding Bitcoin ETF Approval
The poll conducted by Bitwise reveals a lack of confidence among financial advisors regarding the approval of a Bitcoin ETF in the near future. While market observers believe it is only a matter of time before the SEC approves such an ETF, professionals tasked with advising clients on investments are not as certain. The survey also highlights the strong interest in Bitcoin investments among clients and the potential benefits of a spot Bitcoin ETF. With several major applicants making changes to their applications based on SEC requirements, the industry remains hopeful for a positive outcome.
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