The Elusive Pricing Of A Bitcoin ETF: A Revelation Unleashed By Impeccable Research

The recent publication of the “2024 Benchmark Survey of Financial Advisor Attitudes Towards Crypto Assets by Bitwise/VettaFi” offers insights into the current landscape of Bitcoin and cryptocurrency investments. This annual survey, in its sixth year, delves into advisors’ crypto allocations, investment instruments, and BTC price forecasts, revealing sustained client interest and notable obstacles.

The Yet Unpriced Bitcoin ETF: Here’s Why It’s Not Factored In

Among the survey’s insights from 437 financial advisors managing AUM from $1 million to over $100 billion, conducted between October 20 and December 18, 2023, a notable discovery is the stance on a spot Bitcoin ETF approval. Despite strong projections from Bloomberg ETF analysts, only a minority (39%) of advisors anticipate approval for a spot BTC ETF in 2024.

This view sharply differs from the overall market sentiment, revealing a distinct divergence in expectations. Despite this skepticism, a considerable majority of advisors (88%) see a spot ETF approval as a crucial catalyst, indicating pent-up demand yet to materialize in the market. The survey noted that “88% of advisors interested in buying BTC are holding off until a spot ETF is approved.

Those involved in crypto remain resolute, with 98% intending to maintain or boost their crypto exposure in 2024. The survey highlighted a notable surge in substantial crypto allocations within client portfolios, more than doubling from 22% in 2022 to 47% in 2023.

Additionally, client fascination with Bitcoin and cryptocurrencies persists, with 88% of advisors reporting inquiries about crypto from their clients last year. Moreover, a substantial number of advisors (59%) indicated that their clients are independently investing in cryptocurrencies, showcasing keen interest beyond traditional advisory domains.

Preferences among advisors indicate a leaning towards crypto equity ETFs for 2024 allocations. Regulatory uncertainty (64%) and volatility (47%) remain top concerns limiting increased crypto portfolio adoption. Notably, the survey unveiled a strong advisor preference for BTC over Ethereum, with 71% favoring the former, marking a substantial rise from the previous year’s 53%.

Bitwise’s CIO, Matt Hougan, emphasized these results, noting the significant gap in expectations between advisors and ETF observers regarding a potential spot Bitcoin ETF approval. He highlighted the latent demand, with nearly 90% of advisors expressing readiness to invest in Bitcoin post-ETF approval, suggesting substantial demand beneath the surface.

The survey portrays a cautiously optimistic view on market predictions. Over half of respondents (52%) anticipate a higher Bitcoin price in a year, growing to 64% over five years. Short-term expectations for Bitcoin surpassing its all-time high are modest (9%), but over five years, it rises to 38%.

Currently, BTC is trading at $43,687.

* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.