Why Financial Advisors Are Skeptical About Spot Bitcoin ETF Approval

A recent report revealed a significant gap between advisor expectations and market analysts’ predictions regarding the approval of a spot Bitcoin ETF (exchange-traded fund) in 2024.

It offered a deep dive into the perspectives and predictions of financial advisors on cryptocurrency.

Financial Advisors Doubt Spot Bitcoin ETF Approval

A Bitwise Asset Management and VettaFi survey revealed that 61% of financial advisors don’t anticipate the approval of a spot Bitcoin ETF this year. Surprisingly, this contrasts sharply with crypto enthusiasts’ 88% likelihood estimate for a January approval.

The disparity indicates a potential undervaluing of the market’s readiness for such an ETF

The advisors’ view of an approved spot Bitcoin ETF as a significant catalyst is a major revelation from the survey. Indeed, an overwhelming 88% of advisors interested in purchasing Bitcoin are on standby, awaiting post-ETF approval to make their move.

Access to cryptocurrency remains a hurdle for many advisors. Only 19% indicated the capability to purchase crypto in client accounts. However, the survey shows a strong commitment among those already invested in crypto. 98% of such advisors plan to maintain or increase their crypto exposure in 2024.

Notably, substantial crypto allocations (over 3% of a portfolio) have more than doubled in a year.