Limited Enthusiasm: Survey Indicates 39% Predict Spot Bitcoin ETF Approval by SEC in 2024

This year, the spot Bitcoin ETF approval by the US Securities and Exchange Commission (SEC) is deemed certain by just 39% of financial advisors, according to a recent survey.

The survey’s findings demonstrate that financial advisors are generally skeptical of the commission’s decision to approve a spot Bitcoin exchange-traded fund (ETF).

There are several reasons for this lack of assurance. The SEC’s cautious and conservative past handling of cryptocurrency-related items is the first and most important factor.

1. Low Confidence in Spot Bitcoin ETF Approval:

  • Only 39% of financial advisors believe that the US Securities and Exchange Commission (SEC) will approve a spot Bitcoin exchange-traded fund (ETF) in 2024, according to a recent survey.
  • Financial advisors express skepticism, citing the SEC’s cautious and conservative approach to cryptocurrency-related matters as a key factor.

2. Survey Conducted by Bitwise and VettaFi:

  • Bitwise and VettaFi conducted the survey, with over 400 respondents, including independent registered investment advisers (RIAs), institutional investors, financial planners, broker-dealer reps, and other investment specialists.
  • The survey reveals a significant difference in expectations between financial advisors and specialists actively monitoring ETF developments.

3. Institutional Judgment Day on January 10:

  • Financial institutions, including BlackRock, Inc., VanEck, and Valkyrie Investments, await the SEC’s judgment on their spot ETF applications for Bitcoin on January 10.
  • Bitwise Chief Investment Officer Matt Hougan emphasizes the importance of understanding the perspectives of professionals controlling a significant portion of America’s wealth to gauge the direction of the crypto market.

4. Advisors’ Investment Hesitation:

  • Despite Bloomberg ETF experts suggesting a 90% probability of approval, less than half of advisors agree, and 88% consider the approval a critical event.
  • Many advisors are holding off on Bitcoin investments until the SEC gives the green light for a Bitcoin ETF, indicating a significant latent demand in the market.

5. Market Response and Bitcoin Price Movement:

  • Despite the survey results, the price of Bitcoin has not responded negatively and has continued to rise, experiencing a 3% increase in the past day, reaching $43,956 at the time of writing.
  • The Matrixport report predicting SEC rejection in January 2024 did not impact Bitcoin’s price.

6. Deadline and Eligibility for Approvals:

  • Final changes for SEC approval were due by December 29, 2023. Issuers missing this deadline would not be eligible for early January approvals, setting the stage for a crucial period in the ETF approval process.

Featured image from Shutterstock source.

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