Markets News Report
January 05, 2024

Only 39% of Advisors Expect Approval of Spot Bitcoin ETF in 2024, claims Bitwise

Only 39% of Advisors Expect Approval of Spot Bitcoin ETF in 2024, claims Bitwise

The crypto community’s hopes are at an all-time high anticipating the approval of spot Bitcoin ETF by the SEC, however, “only 39% of advisors believe a spot Bitcoin ETF will be approved in 2024,” as per a study from Bitwise, an American crypto index fund manager company.

According to the company, it surveyed 437 financial advisors across the nation to gauge their views on crypto assets. This contrasts with Bloomberg ETF analysts who peg the likelihood of a January approval at 90%.

Reacting to these findings, James Seyffart, an analyst covering ETFs at Bloomberg, said on X (formerly Twitter), “Not gonna lie. This is very surprising to me. Particularly with all the added media coverage. Only 39% of advisors surveyed are expecting a spot Bitcoin ETF in 2024. Probably a case of boy who cried wolf haha.”

“If you want to gauge where crypto is going, you need to talk to the professionals who control roughly half the wealth in America,” said Matt Hougan, CIO of Bitwise.

“The big takeaway from these advisors this year is that, for all the hoopla surrounding the potential approval of a spot bitcoin ETF, it doesn’t appear to be priced in. There’s a massive gap in expectations between advisors and those who monitor ETF developments for a living,” Hougan added.

However, in the same finding, Bitwise highlighted a vast majority or 88% of advisors interested in purchasing bitcoin are waiting until after a spot bitcoin ETF is approved.

Contrary to this, recent guidance from the SEC and several media reports suggests that there’s a strong chance they’ll approve it by January 10, 2024.

Crypto Investments Surge as Advisors Predict Strong 2024 Growth

A clear trend emerges in the world of financial advisory – once investors step into the realm of cryptocurrency, they are inclined to stay and even increase their exposure. “98% of advisors who currently have an allocation to crypto in client accounts plan to either maintain or increase that exposure in 2024,” the survey revealed.

Client interest in cryptocurrencies continues to remain robust, with 88% of advisors reporting that their clients raised questions about crypto throughout the previous year.

Looking ahead to 2024, the survey reveals a particular interest among advisors in crypto equity exchange-traded funds (ETFs). When asked about the type of crypto exposure they were most interested in allocating to this year, crypto equity ETFs emerged as the top choice.

However, as the crypto market continues to mature, challenges such as regulatory uncertainty and volatility loom large, as 64% of advisors expressed regulatory uncertainty as a significant barrier to greater adoption of cryptocurrencies in portfolios, while 47% identified volatility as a pressing concern.

Interestingly, the survey also highlights a shift in preference among advisors when it comes to specific cryptocurrencies. Bitcoin has become the preferred choice, with 71% of advisors favoring it over Ethereum. This marks an increase from the previous year when only 53% expressed a preference for Bitcoin.

In conclusion, Bitiwse’s survey paints a picture of a evolving landscape where cryptocurrency investments are gaining traction, but challenges like regulatory uncertainty and volatility persist.

Disclaimer

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About The Author

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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Kumar Gandharv
Kumar Gandharv

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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