Key Points:

  • The Bitwise 2024 survey shows 39% of advisors expect a spot bitcoin ETF approval, but 88% plan to invest post-approval.

  • Only 19% of advisors can buy crypto for clients, yet 98% of current allocators aim to increase exposure in 2024.

  • BlackRock and Fidelity push for spot bitcoin ETF approval, anticipating a potential $1 billion cash flow, says CoinShares's James Butterfill.

Bitwise partnered with VettaFi, a prominent data-driven ETF platform, to unveil the insights from their sixth annual "Bitwise/VettaFi 2024 Benchmark Survey of Financial Advisor Attitudes Toward Crypto Assets."

Spot Bitcoin ETF Approval: Cautious Advisors and High-Interest

Conducted from October 20 to December 18, the survey showcased key findings:

  • Less than half of advisors (39%) anticipate the approval of a spot bitcoin ETF in 2024, contrasting with Bloomberg ETF analysis predicting a 90% likelihood in January.

  • Despite low expectations, 88% of advisors interested in Bitcoin plan to invest after spot Bitcoin ETF approval, indicating potential increased demand.

  • Crypto access for advisors remains limited, with only 19% able to buy crypto in client accounts.

  • A staggering 98% of advisors are currently allocating to a crypto plan to either maintain or increase exposure in 2024.

  • Large crypto allocations (over 3% of a portfolio) rose from 22% in 2022 to 47% in 2023 among advisors with crypto exposure.

  • Client inquiries about crypto persist, with 88% of advisors receiving questions in the past year.

Over 400 financial advisors, including registered investment advisors, broker-dealer representatives, financial planners, and wirehouse representatives, participated in the survey.

The spotlight is on the anticipation of a spot bitcoin ETF, potentially bringing $1 billion in cash flow in the near term, according to James Butterfill, CoinShares's Head of Research. Major ETF players, BlackRock and Fidelity, made a final push for spot Bitcoin ETF approval, filing amended registration forms with the SEC in late December, with Jane Street Capital and JPMorgan Securities LLC as authorized participants.

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