Why 64% of all traders choose to hodle before the Bitcoin ETF is approved

Many traders are adopting a long-term holding strategy as the crypto market evolves, especially with the approval of Bitcoin ETFs (exchange-traded funds) on the horizon.

A recent survey provided an overview of how crypto traders navigate the market. It sheds light on the characteristics of the business, motivation and the broader perspective of the traders.

HODLing before Bitcoin ETF approval

The survey revealed that the majority of respondents (63.8%) trade on both centralized and decentralized exchanges. It shows balanced confidence in different marketing platforms. Interestingly, a small fraction of respondents (10.3%) could not identify the types of accessories they use.

This information shows the convergence of expertise and the learning curve among crypto traders.

Intuitive insight: Incentives provided by DeFi projects are highly influential for 62.1% of respondents to engage in DeFi business. Other encouraging factors include the possibility of high returns (59.8%) and wide access to tokens (52.1%).

These incentives combined with the broader potential of DeFi are shaping engagement and business behavior.

One of the main issues revealed by the survey was the respondents' preferences regarding long-term holdings. 64% of respondents supported this strategy, which is consistent with the growing approval of Bitcoin ETFs.

Read more: How to buy Bitcoin (BTC) and everything you need to know

The holding strategy, commonly referred to as “HODLing” in the crypto market, reflects long-term optimism about the potential growth and mainstream adoption that Bitcoin ETF approval will bring. This approval is considered to be a major step in dissolving traditional financial mechanisms. crypto, opens up new horizons for investors and the wider financial market.

“The timing of the spot Bitcoin ETF's approval is unclear, but should happen within months and probably before January 10, 2024, the final deadline for ArcInvest and 21Shares' applications,” wrote JPMorgan analysts led by Nicolas Panigirtzoglou.

As the SEC inches closer to approving Bitcoin ETFs, the holding strategy adopted by crypto traders reflects a mix of caution and optimism, as suggested by recent developments related to grayscale investments.

Still, SEC Chairman Gary Gensler emphasized that it could take some time for the federal agency to approve any Bitcoin ETFs.

They come before a five-member commission. I don't prejudge them, but I have nothing against the passage of time. They all have different registration dates,” Gensler said.