Only 39% of advisors expect a spot Bitcoin ETF to be approved in 2024, Bitwise claimed.
Posted: January 5, 2024 8:56 AM Updated: January 5, 2024 8:56 AM
Correction and fact check date: January 5, 2024, 8:56 AM
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According to US cryptocurrency index fund management company Bitwise, only 39% of advisors believe a spot Bitcoin ETF will be approved in 2024.
The cryptocurrency community’s hopes are high as they look forward to the SEC’s approval of a spot Bitcoin ETF. However, according to research from Bitwise, “only 39% of advisors believe a spot Bitcoin ETF will be approved in 2024.” American cryptocurrency index fund manager company.
According to the company, it surveyed 437 financial advisors across the country to gauge their views on cryptocurrency assets. That contrasts with Bloomberg ETF analysts who see a 90% chance of approval in January.
Commenting on these findings, Bloomberg ETF analyst James Seyffart said on This is very surprising to me. Especially with all the added media coverage. Only 39% of advisors surveyed are expecting a spot Bitcoin ETF in 2024. Maybe it’s a case of the boy who cried wolf haha.”
“To gauge where cryptocurrencies are headed, you need to talk to experts who control roughly half of America’s wealth,” said Matt Hougan, CIO of Bitwise.
“The biggest takeaway from these advisors this year is that despite all the buzz surrounding the potential approval of a spot Bitcoin ETF, it appears to be unpriced. There is a huge difference in expectations between advisors and those monitoring ETF development. For a living,” Hougan added.
However, in the same survey, Bitwise highlighted that the majority, or 88%, of advisors interested in purchasing Bitcoin are waiting for a spot Bitcoin ETF to be approved.
In contrast, recent guidance from the SEC and several media reports indicate that approval is likely to occur by January 10, 2024.
Cryptocurrency Investment Surges as Advisors Predict Strong 2024 Growth
A clear trend is emerging in the world of financial advice. Once investors step into the cryptocurrency space, they tend to stick around and even increase their exposure. According to the survey, “98% of advisors who currently have a cryptocurrency allocation to their client accounts plan to maintain or increase that exposure in 2024.”
Client interest in cryptocurrencies continues to be strong, with 88% of advisors reporting that clients have raised questions about cryptocurrencies throughout the year.
The survey revealed special interest among advisors in cryptocurrency stock exchange-traded funds (ETFs) as they look ahead to 2024. When asked what type of cryptocurrency exposure they were most interested in allocating to this year, cryptocurrency stock ETFs emerged as the top choice.
However, as the cryptocurrency market continues to mature, issues such as regulatory uncertainty and volatility will increase. 64% of advisors expressed regulatory uncertainty as a significant barrier to greater adoption of cryptocurrencies in their portfolios, while 47% identified volatility as a pressing concern.
Interestingly, the survey highlights a shift in preferences among advisors when it comes to specific cryptocurrencies. Bitcoin has become the preferred choice, with 71% of advisors preferring Bitcoin over Ethereum. This is an increase compared to the previous year, when only 53% preferred Bitcoin.
In conclusion, Bitiwse’s survey paints a picture of an evolving landscape where cryptocurrency investments are gaining traction, but challenges such as regulatory uncertainty and volatility persist.
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Kumar is an experienced technology journalist specializing in the dynamic intersection of emerging fields including AI/ML, marketing technology, cryptocurrency, blockchain, and NFTs. With over three years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and providing comprehensive insights. Kumar’s specialty is producing high-impact content including articles, reports and research publications for prominent industry platforms. With a unique skill at combining technical knowledge and storytelling, Kumar excels at communicating complex technical concepts in a clear and engaging way to diverse audiences.
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Kumar is an experienced technology journalist specializing in the dynamic intersection of emerging fields including AI/ML, marketing technology, cryptocurrency, blockchain, and NFTs. With over three years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and providing comprehensive insights. Kumar’s specialty is producing high-impact content including articles, reports and research publications for prominent industry platforms. With a unique skill at combining technical knowledge and storytelling, Kumar excels at communicating complex technical concepts in a clear and engaging way to diverse audiences.