Advisors Skeptical About Bitcoin ETF Approval
A recent survey conducted by Bitwise reveals that investment advisors are not as optimistic about the approval of a Bitcoin ETF as the online crypto community. Only 39% of surveyed advisors believe that an ETF will be approved in 2024.
The Survey and Recent Developments
The survey took place between October 20 and December 18, during a period of significant price appreciation for Bitcoin. This was fueled by the belief that an ETF approval was imminent, especially after events like BlackRock’s June ETF application and Grayscale’s August court victory over the SEC.
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However, Bloomberg ETF analyst Eric Balchunas suggests that many traditional advisors may not be as informed about these developments since they are not spending much time on social media or online platforms.
Potential Approvals and Market Impact
Despite the skepticism among advisors, Balchunas and analyst James Seyffart believe that there is a 90% likelihood of Bitcoin ETF approvals between January 8 and 10. They suggest that approvals may come as early as this week, leading to increased market activity.
Bitwise CIO Matt Hougan sees the lack of faith from advisors as a bullish sign. He believes that if approvals do happen, it would indicate that the market has not yet fully priced in the impact of a Bitcoin ETF.
The Demand for Crypto Investments
The survey also highlighted that only 19% of advisors can currently buy cryptocurrencies for client accounts, despite 88% of advisors receiving questions about crypto from clients last year. Additionally, 71% of advisors prefer Bitcoin over Ethereum.
Hot Take: Advisors Remain Cautious About Bitcoin ETF
The survey results from Bitwise suggest that investment advisors are not as confident as the online crypto community when it comes to the approval of a Bitcoin ETF. This skepticism may be due to a lack of awareness about recent developments in the crypto space. However, analysts still believe that approvals are likely to happen soon, potentially leading to increased market activity. It remains to be seen whether the demand for crypto investments will continue to grow among advisors once an ETF is approved.
