ll be the charm as it recently filed a new application for a spot Bitcoin ETF The survey results indicate that financial advisors may have a more cautious outlook on the approval of a Bitcoin ETF compared to market observers. However, the demand for a Bitcoin ETF is still high among advisors and their clients.
Lack of Confidence in Bitcoin ETF Approval
According to the poll conducted by Bitwise, only 40% of financial advisors expressed confidence that a Bitcoin ETF will be available to American investors in 2024. This is a surprising outcome considering the prevailing belief among market observers that the approval of a Bitcoin ETF by the SEC is inevitable. The majority of advisors tasked with guiding their clients' investments appear to be more skeptical about the timing of the approval.
Waiting for a Bitcoin ETF
Interestingly, despite their doubts, 88% of respondents who are interested in purchasing Bitcoin on behalf of their clients are waiting for a Bitcoin ETF to be available. This indicates that there is significant demand for a spot Bitcoin ETF among advisors and their clients. A Bitcoin ETF would provide a convenient way for investors to gain exposure to Bitcoin without the complexities of buying and holding the cryptocurrency directly. It would eliminate the need to navigate hardware wallets or manage private keys, making it an attractive option for many investors.
Client Engagement in Crypto
The survey also revealed that a substantial number of clients have been dabbling in cryptocurrencies outside of their relationship with financial advisors. Approximately 60% of respondents reported that clients have been involved in crypto investments independently. This is an encouraging sign for firms considering whether to offer crypto products, as it suggests a growing interest in cryptocurrencies among investors.
Decline in Client Allocations to Crypto
While the number of clients allocating funds to cryptocurrencies has fallen slightly, down to 11% in 2023 from 15% in 2022 and 16% in 2021, it is still higher than previous years. In 2020 and 2019, less than 10% of clients expressed a desire to include crypto in their investment portfolios. This indicates that despite the slight decline, the overall interest in cryptocurrencies among clients remains relatively high.
Bitwise's Stake in Bitcoin ETF Approval
It is important to note that Bitwise, the company that conducted the survey, has a vested interest in the approval of a Bitcoin ETF. The company first filed its application for the Bitwise Bitcoin ETF Trust with the SEC in 2019 but was rejected. It then refiled an application in 2021, only to be turned down again. However, Bitwise remains hopeful as it has recently submitted a new application for a spot Bitcoin ETF. The survey results provide valuable insights into the sentiment among financial advisors regarding the approval of a Bitcoin ETF and highlight the demand for such a product in the market.
Comments
Post a Comment