Spot Bitcoin ETF: Survey Reveals Lower Than Anticipated Advisor Confidence
The level of enthusiasm surrounding potential spot Bitcoin ETF products is not uniformly high, as indicated by a recent survey conducted by Bitwise, an investment management firm vying for the fund’s approval.
Insight from the Bitwise Spot Bitcoin ETF Survey shows that less than half of the 437 financial investment advisors surveyed in the United States are optimistic about the approval of a spot Bitcoin ETF this year, with only 39% expressing confidence. This finding comes as a surprise, considering the current market sentiment, which suggests that the majority of applicants are fully prepared for approval from the United States Securities and Exchange Commission (SEC). In contrast, Bloomberg’s top ETF analysts, Eric Balchunas and James Seyffart, have previously predicted a 90% chance of approval for the Bitcoin ETF.
The Bitwise survey also provides interesting insights into the perception of the broader digital currency ecosystem. The survey reveals that accessibility to digital currencies is considered a significant barrier to adoption, with 19% of respondents citing this as a reason for their hesitation to fully embrace the nascent financial ecosystem.
Despite these challenges, the majority of financial advisors, comprising 88% of respondents, express interest in adopting Bitcoin, contingent upon the potential approval of a spot Bitcoin ETF by the SEC.
Another notable trend observed in the survey is the willingness of investment advisors with current exposure to spot Bitcoin ETFs to maintain or increase their allocations once more regulatory clarity is achieved. A remarkable 98% of these advisors intend to maintain or increase their crypto holdings once the regulatory landscape becomes clearer.
Regarding the expectation for Bitcoin ETFs, the digital currency ecosystem has experienced volatile reactions to spot Bitcoin ETF news in the past. For instance, last year, the market reacted nervously to news of the false approval of BlackRock’s ETF application, as reported by Cointelegraph. Additionally, recent reports suggest that the SEC may potentially reject spot Bitcoin ETFs due to inconsistencies with current regulatory policies. Despite these updates causing a significant downturn in the price of Bitcoin and the wider market, industry giants like Bitwise remain optimistic about the approval prospects.
To further strengthen this bullish sentiment, Bitwise predicts that the price of Bitcoin could skyrocket to $80,000 once approval for the spot Bitcoin ETF is secured.