IN SHORT
Pending the approval of a cash Bitcoin ETF, 64% of crypto traders adopt a long-term HODLing strategy.
While some of them use centralized crypto exchanges, others prefer to go through decentralized exchanges.
The wave of speculation around Bitcoin ETFs has significantly influenced the behavior of crypto traders.Pending the approval of a cash Bitcoin ETF, 64% of crypto traders are adopting a HODLing strategy.
According to a study carried out by the Injective platform, the wave of speculation around Bitcoin ETFs has significantly influenced the behavior of crypto traders. The survey focuses on the trading styles, motivations, as well as the prospects of crypto investors.
It's time at HODLing
The survey thus reveals that most of the respondents (63.8%) carry out transactions on centralized and decentralized crypto exchanges. Thus, contrary to popular belief, the CEX does not seem to have lost investor confidence following the collapse of FTX.However, it should be noted that 10.3% of investors surveyed do not know if they use DEX or CEX. A figure that says a lot about the diversity of users of crypto platforms and that shows us once again the need for blockchain and crypto education.
In addition, the study reveals that 62.1% of crypto traders use DeFi platforms to earn rewards. Similarly, 59.8% say they are motivated by the attractive returns of these platforms, while 52.1% use them to access a wider range of tokens.
All these factors, combined with the vast potential of the DeFi sector, stimulate engagement and shape crypto trading behavior.
While the American stock exchange gendarme could soon pronounce his verdict on cash Bitcoin ETFs, 64% of traders surveyed say they adopt a long-term HODLing strategy.When will a spot ETF be approved?
If most crypto traders prefer to adopt a HODLing strategy, it is mainly because of the optimism surrounding the approval of a Bitcoin ETF. Indeed, this approval could be a significant step towards merging traditional financial mechanisms with cryptocurrencies. It could also open up new horizons for crypto investors in particular, and the financial sector in general.
"The exact date of approval of a Bitcoin ETF remains unknown for the moment. But, approval should be done in the coming months and most likely before January 10, 2024, which is the deadline for Ark Invest and 21Shares applications. This is the nearest date among the deadlines that the SEC must meet for Bitcoin cash ETF applications," wrote JPMorgan analysts.
Since Grayscale Investments won its legal battle against the SEC, most analysts believe that the agency will have no choice but to give the green light to Bitcoin ETFs. Nevertheless, HODLing's strategy, which is increasingly adopted by crypto traders, reflects a mixture of prudence and optimism.
However, SEC President Gary Gensler stressed that the approval of these exchange-traded funds "could take time".
"They will finally be studied by a commission of five members. I can't say more, but I don't have any information on the calendar. They all have different filing dates," said Mr. Gensler.
Moral of the story: In times of uncertainty, HODLing prevails over trading.
