In a recent survey, only 39% of financial advisors expressed confidence that the U.S. Securities and Exchange Commission (SEC) will approve the spot Bitcoin ETF in 2024.
What Happened: According to a study by Bitwise and VettaFi, there is a lack of optimism among financial advisors regarding the SEC's approval of the spot Bitcoin ETF in 2024.
Several financial firms, including BlackRock, Inc. (NYSE:BLK), VanEck and Valkyrie Investments, are awaiting the SEC's decision on their spot ETF applications for Bitcoin, scheduled for Jan. 10.
Despite Bloomberg ETF analysts' 90% approval probability, the survey shows that less than half of the advisors agree. However, 88% view approval as a significant trigger and are postponing Bitcoin purchases until the ETF gets the green signal.
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The study, which surveyed over 400 advisors nationwide, also found that only 19% can buy crypto on client accounts, implying restricted access to crypto. Nonetheless, of those presently investing in crypto for their clients, 98% plan to retain or augment their exposure in 2024.
"There's a massive gap in expectations between advisors and those who monitor ETF developments for a living," said Bitwise CIO Matt Hougan. "Almost 90% of advisors say they're waiting for an ETF before making a bitcoin investment, indicating a lot of demand just below the surface."
Why It Matters: In the run-up to the SEC's decision, officials had reportedly convened meetings with representatives from firms like BlackRock and Grayscale Investments (OTC:GBTC) to discuss their proposed Bitcoin ETFs.
The SEC had set Dec. 29, 2023, as the deadline for final amendments, and issuers who failed to meet this deadline would not be considered for the early January approvals.
However, Peter Schiff, economist and gold advocate, cautioned about potential market reactions to an anticipated approval of Bitcoin ETFs by the SEC. Schiff warned that those waiting for the actual news to sell their Bitcoin might find very few speculators left to buy.
Price Action: At the time of writing, BTC was trading at $43,954.6119, up 1.02% in the last 24 hours, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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