A new survey conducted by digital asset management firms Bitwise and ETF data provider VettaFi has uncovered a notable discrepancy in the outlook of financial advisors regarding the approval of a spot Bitcoin exchange-traded fund (ETF) in 2024.
The survey highlighted that while there is continuing interest from clients in cryptocurrencies, financial advisors still face several barriers, including limited access to crypto assets, regulatory uncertainties, and concerns about market volatility.
The Outlook of Financial Advisors
Based on the survey findings, only 39% of the advisors anticipate the approval of a spot Bitcoin ETF in 2024. This view sharply contrasts with the optimistic estimate of Bloomberg ETF analysts, who put the likelihood of an ETF approval by January at 90%.
“Despite lower expectations for approval, a substantial 88% of advisors who expressed interest in purchasing Bitcoin plan to do so after the approval of a spot Bitcoin ETF,”
– Bitwise and VettaFi
This statistic suggests that upon the approval of a Bitcoin ETF, there could be a significant impact on the cryptocurrency market. Additionally, the survey revealed that only 19% of advisors currently have the ability to buy crypto in client accounts, indicating limited access to digital assets in their advisory capacity.
However, advisors who are already invested in crypto show a strong commitment, with 98% planning to either maintain or increase their exposure in 2024. Moreover, there has been a rise in the size of crypto allocations, with 47% of client portfolios with crypto exposure exceeding 3%.
Client Interest and Preferences
Despite the challenges faced by financial advisors, the survey found that 88% of advisors received client inquiries about crypto in the past year. Furthermore, 59% of advisors reported that some or all of their clients were independently investing in crypto outside of their advisory relationship.
There has also been a shift in preference among advisors, with 71% favoring Bitcoin over Ethereum, which marks a significant increase compared to the previous year’s 53%.
Regulatory uncertainty remains a significant concern for advisors, cited by 64% of respondents, followed closely by concerns about market volatility, at 47%.
The survey collected responses from over 400 financial advisors across the United States.
