Bitcoin News

Financial advisers require Bitcoin ETF but await consent

According to market speculations doing the rounds, there are many investment agencies and financial advisors who are prepared to buy BTC. However, they are waiting for a US-spot bitcoin ETF to become accessible. A major number of them strongly feel that a spot bitcoin ETF will not be introduced in 2024. Some feel the consent will help push further funds within this segment.

The US Securities and Exchange Commission (SEC) is fully equipped to render its decision on a spot bitcoin ETF, which has been proposed by 21Shares, Ark Invest, and others, by January 10, 2024.

With BlackRock’s involvement, analysts at Bloomberg Intelligence believe there is a 90% chance of obtaining permission. The other factor is Grayscale’s win over the SEC in August. The situation appears to be packed with supposition.

According to the findings of a survey conducted by Bitwise and VettaFi, just 39% of financial experts believe a spot Bitcoin ETF would be approved in 2024.

Almost half of the survey’s 400 participants were independent registered investment advisers (RIAs). Broker-dealer representatives, financial advisors, and institutional investors were also present. 

In total, 98% of advisers have currently invested in crypto to increase distribution. In the case of those who have not yet been distributed, they want to conduct more customer awareness campaigns.

Four of the five advisors either failed to buy cryptocurrency for their clients or were unsure that it was even possible. While half of those surveyed cited a lack of regulation certainty as the explanation, 14% cited the launch of a spot Bitcoin ETF as an aid to payouts. The approval of the SEC is still pending for about 88% of the interested advisers.

Matt Hougan, chief investment officer at Bitwise, asserts that in the case of ETFs, there appears to be no connection between advisors and trackers. Furthermore, 90% of the advisors explicitly state that they are awaiting the introduction of an ETF before contemplating a Bitcoin investment.

Ryan Rasmussen, a research analyst at Bitwise, informed Blockworks that an increasing number of financial advisors were considering a greater Bitcoin distribution due to the volatile demand and supply environment. As a consequence, the survey results have been made public. 

Charles Yu, a research associate at Galaxy Digital, stated that bitcoin ETFs received a capital inflow of $14.4 billion in the initial year of trading. The bargain asset’s value would increase by 74%.

Yu estimates that the value of assets under the control of RIAs, broker-dealers, and financial institutions totals $48 trillion.

Jason Palmer

Jason Palmer joined CoinNewsSpan as an editor and analyst. He has over five years of experience as a forex analyst. He holds a master's degree in business administration with specialization in finance. He is actively involved in analyzing the prevalent crypto trends. He has a keen interest in commodities and forex trading.

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