Low Turnout: 39% Predict Spot Bitcoin ETF Approval By SEC In 2024, Survey Says

This year, the spot Bitcoin ETF approval by the US Securities and Exchange Commission (SEC) is deemed certain by just 39% of financial advisors, according to a recent survey.

The survey’s findings demonstrate that financial advisors are generally skeptical of the commission’s decision to approve a spot Bitcoin exchange-traded fund (ETF).

There are several reasons for this lack of assurance. The SEC’s cautious and conservative past handling of cryptocurrency-related items is the first and most important factor.

Advisors Skeptical: SEC’s Bitcoin ETF Fate

Financial advisors appear pessimistic about the SEC’s approval of the spot Bitcoin ETF this year, based a survey conducted by Bitwise and VettaFi.

On January 10, a number of financial institutions, including BlackRock, Inc., VanEck, and Valkyrie Investments, will find out the regulatory body’s judgment about their spot ETF applications for Bitcoin.

Among the over 400 respondents to the poll, independent registered investment advisers (RIAs) made up nearly half of the sample. The remaining group included institutional investors, financial planners, broker-dealer reps, and other investment specialists.

Bitwise Chief Investment Officer Matt Hougan said:

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

Hougan highlighted a notable discrepancy in expectations between specialists who actively monitor ETF developments and financial counselors.

He emphasized that there is a significant latent demand in the market by pointing out that around 90% of advisors are delaying bitcoin investments until the release 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 a spike in interest in the event that an ETF is made accessible.

“There’s a massive gap in expectations between advisers and those who monitor ETF developments for a living,” Hougan said in a statement.

Investment Hesitation: Advisors Await Bitcoin ETF

Less than half of advisors concur, despite Bloomberg ETF experts’ 90% acceptance probability, according to the study. But 88% see approval as a critical event and are holding off on buying Bitcoin until the ETF receives the all-clear.

Meanwhile, in contrast to the Matrixport report, which predicted that the SEC would reject proposals for spot Bitcoin ETFs in January 2024, the price of Bitcoin has not responded to the results of the Bitwise poll and has continued to climb, rising 3% in the past day to trade at $43,956 as of this writing.

Final changes were due to the SEC by December 29, 2023, and issuers who missed this deadline would not be eligible for the early January approvals.

Featured image from Shutterstock

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