A recent survey conducted by digital asset management firms Bitwise and ETF data provider VettaFi has uncovered significant discrepancies in the expectations of financial advisors regarding the approval of a spot Bitcoin ETF in 2024.
The survey highlighted ongoing interest from clients in the cryptocurrency space. However, it also brought to light persistent hurdles faced by financial advisors, including restricted access to cryptocurrencies, regulatory uncertainties, and concerns about market volatility, as stated in an announcement from the two firms.
The findings revealed that less than half of the surveyed advisors (39%) foresee the approval of a spot Bitcoin ETF in 2024. This stands in stark contrast to the optimistic estimate of Bloomberg ETF analysts, who project a 90% likelihood of ETF approval by January. The survey underscores the diverse perspectives within the financial industry regarding the potential approval of a Bitcoin ETF in the coming year.
Despite the more cautious outlook on approval, a noteworthy 88% of advisors expressing interest in acquiring Bitcoin intend to do so post the approval of a spot Bitcoin ETF. This signals the possibility of a substantial market impact that may exceed expectations.
The survey further highlights a significant access barrier, with only 19% of advisors claiming the capability to incorporate cryptocurrencies into client accounts. This underscores the limited exposure to digital assets within their advisory roles.
For those advisors already involved in the crypto space, there is a strong commitment, as 98% plan to either maintain or increase their exposure in 2024. Additionally, there’s a trend toward larger crypto allocations, with 47% of client portfolios with crypto exposure exceeding 3%. These findings reflect an increasing interest and commitment among financial advisors to navigate the evolving landscape of digital assets within their investment strategies.
88% of Advisors Received Inquiries About Crypto as Bitcoin ETF Talk Intensifies
Despite the challenges, an overwhelming 88% of advisors received client inquiries about cryptocurrencies in the past year. Notably, 59% of advisors reported that “some” or “all” of their clients were independently investing in crypto outside of their advisory relationship.
In a noteworthy shift from the previous year, 71% of advisors now favor Bitcoin over Ethereum, indicating a substantial increase from the previous year’s figure of 53%.
Concerns regarding regulatory uncertainty remain significant, with 64% of advisors citing it as a major worry, closely followed by apprehensions about market volatility, which were expressed by 47% of respondents.
The survey, which gathered responses from more than 400 financial advisors across the United States, provides insights into the evolving landscape of client engagement and preferences in the rapidly changing realm of cryptocurrencies.
