In its latest poll, Bitwise Asset Management showed that only 39% of the 437 financial advisors believe the US Securities and Exchange Commission (SEC) will approve spot Bitcoin exchange-traded fund (ETF).
Financial Advisors Uncertain on Bitcoin ETF Approval
The poll shows that about 60% of financial advisors are still uncertain on whether American investors can access the Bitcoin ETF. The exciting poll’s exciting outcome is that most market observers consider SEC’s nod for the Bitcoin ETF a foregone conclusion.
The Bitwise poll echoed Grayscale’s report in early December that the market observers consider the SEC’s approval of the Bitcoin ETF to be a matter of when and not if it will be approved.
The Bitwise poll illustrates that most professionals advising clients on viable investments lack similar confidence.
The survey by the San Francisco-based firm indicated that though the professional advisors lack the conviction of Bitcoin ETF approval, 88% of respondents expressed interest in acquiring Bitcoins for their clients who await the ETF availability.
Few Clients Allocating Funds Towards Crypto
Bitwise poll revealed that spot Bitcoin ETF would provide investors a channel to add Bitcoin exposure to the existing portfolios without actual purchase and hold to the Bitcoin.
The advisors acknowledged that Bitcoin ETF benefits the investors without incurring overheads, such as utilising hardware wallets and private keys.
Bitwise indicated that six of the ten respondents admitted clients’ dabbling in crypto exclusive of existing relationships with financial advisors. Bitwise interpreted that such occurrences are promising indicators of firms mulling the availability of crypto products.
The survey also illustrated that clients allocating funds towards crypto slipped from 16% in 2021, 15% in 2022, to 11% in 2023. Nonetheless, the number allocated to the crypto ecosystem surpasses 2020 and 2019. The two years saw clients seeking crypto allocation in their portfolios below 10%.
The poll findings are informative to the Bitwise Asset Management firm, given that it’s a hopeful applicant for the Bitcoin ETF. The California-based firm submitted an initial bid for the Bitwise Bitcoin ETF Trust with the SEC in 2019 before its rejection.
The Bitwise team confirmed refiling the application two years later, in 2021, only to suffer a similar outcome. The company awaits the Gary Gensler-chaired regulator to approve the third application.
Bitwise Asset Management went public in September to criticise the SEC’s repeated rejection of its applications. Subsequently, the firm confirmed amending the application and refiling in November 2023. Primarily, the firm identified itself as Bitwise Bitcoin ETF.
Spot Bitcoin ETF Applicants File Amended S-1
Bitwise conducted the poll jointly with VettaFi from 437 respondents from October 20 to December 18. The team indicated that parsing the huge survey data and its conversion into a polished report is time-intensive. The time-intensive process explains the delayed publication since receiving the last responses.
Bitwise observed that SEC had conveyed several details regarding requirements expected from the applicants. The disclosure has occurred since wrapping up the survey on the requirements to fulfil before feeling comfortable with approving Bitcoin ETF.
The disclosure by the SEC before Christmas required the applicants to disclose the authorised participants when submitting S-1 registrations. Also, the regulator portrayed a strong preference for cash creation and redemption rather than in-kind Bitcoin.
BlackRock led other applicants in filing their amended S-1 registrations to disclose the authorised participants. Cathy Wood’s Ark Invest echoed the move by Fidelity detailing its authorised participants.
Grayscale Investments led other Bitcoin ETF contenders Valkyrie, VanEck, and Ark Invest, confirming they were gaining approval from their exchanges of choice. The applicants revealed approval from the Chicago Board Options Exchange (Cboe) to start trading upon the SEC greenlighting their applications.
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