A Disparity in Expectations Among Financial Advisors
A recent survey conducted by Bitwise and VettaFi has uncovered differing opinions among financial advisors regarding the approval of a spot Bitcoin ETF in 2024. While there is ongoing client interest in cryptocurrency, the survey highlights the challenges faced by advisors, including limited access to crypto, regulatory uncertainty, and concerns about market volatility.
According to the survey, less than half of the advisors surveyed (39%) believe that a spot Bitcoin ETF will be approved in 2024. This contrasts with Bloomberg ETF analysts’ optimistic estimate of a 90% likelihood of approval by January.
Significant Market Impact Expected After Approval
Despite lower expectations for approval, 88% of advisors who are interested in purchasing Bitcoin plan to do so after the approval of a spot Bitcoin ETF. This suggests that there could be a substantial market impact that exceeds expectations.
However, only 19% of advisors currently have the ability to buy crypto for their clients, indicating limited access to digital assets in their advisory capacity. Nevertheless, advisors who are already invested in crypto show a strong commitment, with 98% planning to maintain or increase their exposure in 2024.
Inquiries About Crypto Increase as ETF Talk Grows
Despite the challenges faced by financial advisors, 88% of them received inquiries from clients about crypto in the past year. Additionally, 59% reported that some or all of their clients were independently investing in crypto outside of their advisory relationship.
Furthermore, there has been a significant shift in preference towards Bitcoin over Ethereum among advisors. In the previous year’s survey, 53% favored Bitcoin, while this year’s survey shows that number has increased to 71%.
The survey included responses from over 400 financial advisors across the US.
Hot Take: Financial Advisors Remain Skeptical About Spot Bitcoin ETF Approval in 2024
A recent survey conducted by Bitwise and VettaFi reveals that financial advisors have mixed opinions about the approval of a spot Bitcoin ETF in 2024. While client interest in cryptocurrency remains, advisors face challenges such as limited access to crypto and concerns about regulation and market volatility. The survey shows that less than half of the surveyed advisors anticipate an ETF approval, in contrast to Bloomberg’s optimistic estimate. However, if approved, there is potential for a significant market impact. Despite limited access, advisors who are already invested in crypto plan to maintain or increase their exposure. The survey also highlights the increasing interest in crypto among clients and a preference for Bitcoin over Ethereum among advisors.
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