This year, according to a recent survey, only 39% of financial advisors consider timely approval of the bitcoin ETF by the US Securities and Exchange Commission (SEC) safe.
The survey results show that financial advisors are generally skeptical of the commission's decision to approve a spotbitcoin-post-spot-btc-etf-approvals-202401042100″ target=”_blank” rel=”noopener nofollow”> bitcoin exchange-traded fund (ETF).
There are several reasons for this lack of security. The first and most important factor is the SEC's cautious and conservative handling of cryptocurrency-related items in the past.
Skeptical Advisors: The Fate of the SEC's bitcoin ETF
Financial advisors appearbitcoin-etf-approval-only-39-of-experts-expect-sec-greenlight-in-2024-bitwise-survey-” target=”_blank” rel=”noopener nofollow”> pessimistic on the SEC's approval of the bitcoin spot ETF this year, according to a survey by Bitwise and VettaFi.
LESS THAN HALF OF ALL ADVISORS EXPECT A bitcoin SPOT ETF IN 2024…
In a surprising development, only 39% of advisors believe a bitcoin spot ETF will be approved in 2024. By contrast, Bloomberg ETF analysts put the probability of a January approval at 90%.
– Bit by bit (@BitwiseInvest) January 4, 2024
On January 10, several financial institutions, including BlackRock, Inc., VanEck, and Valkyrie Investments, will learn the regulator's judgment on their bitcoin spot ETF applications.
Among the more than 400 respondents, independent registered investment advisors (RIAs) made up almost half of the sample. The remaining group included institutional investors, financial planners, stockbroker representatives, and other investment specialists.
Matt Hougan, Chief Investment Officer at Bitwise, said:
“If you want to assess where cryptocurrencies are headed, you need to talk to the professionals who control about half of the wealth in the United States.”
Hougan highlighted a notable discrepancy in expectations between specialists who actively monitor the evolution of ETFs and financial advisors.
He highlighted that there is significant latent demand in the market and noted that around 90% of advisors are delaying investments in bitcoins until the launch of an ETF.
btc market cap currently at $856.14 billion. Chart: TradingView.com
This highlights the significant difference in expectations and the possibility of an increase in interest should an ETF become available.
“There is a huge gap in expectations between advisors and those who make a living monitoring ETF developments,” Hougan said in a statement.
Investment Hesitation: Advisors Wait for bitcoin ETF
According to the study, less than half of advisors agree, even though Bloomberg ETF experts have a 90% probability of acceptance. But 88% view the approval as a critical event and are holding off on purchasing bitcoin until the ETF receives the go-ahead.
Meanwhile, unlike the Matrixport report, which predicted that the SEC would reject bitcoin spot ETF proposals in January 2024, the bitcoin price has not responded to the Bitwise survey results and has continued to rise, rising 3% in the last day to trade at $43,956 at the time of writing.
Final changes had to be submitted to the SEC by December 29, 2023, and issuers that failed to meet this deadline would be ineligible for early January approvals.
Featured image from Shutterstock
