61% of financial advisors do not expect Bitcoin ETF approval

A recent report has revealed a significant gap between advisor expectations and market analysts' predictions regarding the approval of the spot Bitcoin ETF (currency) in 2024.

It provides an in-depth look at financial advisors' views and predictions on cryptocurrency.

Financial advisors doubt Spot Bitcoin ETF approval

A survey by Bitwise Asset Management and VettaFi found that 61% of financial advisors do not expect the approval of a Bitcoin ETF this year. Interestingly, this is in stark contrast to crypto enthusiasts' 88% estimate of approval in January.

The difference indicates the market's readiness to undervalue such ETFs.

The advisors' endorsement of the Bitcoin ETF as a valuable catalyst was a major revelation from the survey. In fact, a whopping 88% of advisors interested in buying bitcoin are awaiting post-ETF approval to make their move.

Read more: How to prepare for a Bitcoin ETF: A step-by-step approach

Access to cryptocurrency remains a barrier for many advisors. Only 19% indicated the ability to buy crypto in customer accounts. However, the survey shows strong commitment among those who have already invested in crypto. 98% of such advisors plan to maintain or increase their crypto exposure in 2024.

Notably, significant crypto allocations (more than 3% of the portfolio) more than doubled in one year.

The survey also highlights continued client interest in crypto, with 88% of advisors receiving crypto-related inquiries in the past year. In addition, 59% of advisors recognize that their clients invest in cryptocurrencies independently, which indicates that there is a great opportunity in the assets held.

When it comes to investment choices, advisors will focus more on crypto equity ETFs for the 2024 allocation. Among these, regulatory uncertainty (64%) and volatility (47%) are the main issues hindering broader crypto adoption in portfolios. Interestingly, Bitcoin is preferred by 71% of advisors over Ethereum, a significant change from last year.

As Bitwise CIO Matt Hougan emphasized, advisors who control a large portion of wealth in the US have not fully appreciated the impact of the Bitcoin ETF adoption space.

“There's a huge expectation gap between advisors and those who track ETF growth for a living. Couple that with nearly 90% of advisors saying they're waiting for ETFs before investing in bitcoin, and you'll see a lot of interest bubbling under the surface,” Hugan said.