Hard Evidence Shows Why A Bitcoin ETF Isn’t Priced In: Report

Yesterday’s release of the “Bitwise/VettaFi 2024 Benchmark Survey of Financial Advisor Attitudes Toward Crypto Assets,” has shed new light on the current state of Bitcoin and crypto investments. The survey, an annual affair now in its sixth year, explores a range of topics including advisors’ crypto allocations, investment vehicles, and BTC price predictions, uncovering a landscape marked by persistent client interest and significant barriers.

  1. Introduction to Survey: The Bitwise/VettaFi 2024 Benchmark Survey explores financial advisor attitudes toward crypto assets, covering topics such as allocations, investment vehicles, and BTC price predictions.
  2. Bitcoin ETF Approval Expectations: Contrary to Bloomberg’s high likelihood projection, only 39% of the surveyed advisors expect a spot Bitcoin ETF approval in 2024. This disparity highlights a notable gap in expectations.
  3. Advisor Sentiment: Despite skepticism, 88% of advisors see the approval of a spot ETF as a major catalyst, indicating latent demand waiting to be activated in the market.
  4. Access as a Barrier: Limited access to purchasing BTC and crypto in client accounts is reported by 19% of advisors, revealing challenges in incorporating crypto assets into traditional portfolios.
  5. Commitment to Crypto: 98% of advisors already involved in crypto plan to maintain or increase their exposure in 2024, showcasing a strong commitment.
  6. Increasing Crypto Allocations: Large crypto allocations in client portfolios have more than doubled from 22% in 2022 to 47% in 2023.
  7. Client Interest and Independence: 88% of advisors report crypto-related inquiries from clients, and 59% mention clients investing independently in cryptocurrencies beyond traditional advisory services.
  8. Advisors’ Preferences: Crypto equity ETFs are favored for 2024 allocations, with 71% of advisors preferring BTC over Ethereum, a significant increase from the previous year’s 53%.
  9. Concerns Hindering Adoption: Regulatory uncertainty (64%) and volatility (47%) remain primary concerns hindering greater adoption of cryptocurrencies in portfolios.
  10. Outlook and Predictions: More than half of the respondents (52%) believe the price of Bitcoin will be higher in a year, rising to 64% over a five-year horizon. Expectations for Bitcoin surpassing its all-time high increase from 9% in the short term to 38% over the next five years.
  11. Market Snapshot: At the time of the survey, BTC traded at $43,687, hovering below $44,000.

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