Bitwise Claims Financial Advisors Doubtful Whether SEC Sanctions Bitcoin ETF

A Bitwise poll shows that nearly 40% of financial advisors believe that Americans will access a Bitcoin exchange-traded fund (ETF) this year, while the rest are not so confident. This is a fascinating result, considering that according to most market observers, the Securities and Exchange Commission’s (SEC’s) approval of a Bitcoin ETF is possibly an inevitable conclusion. 

Early last month, Grayscale, a crypto behemoth, noted that it is a matter of when, not if. Further, Bitwise claims that most professionals guiding customers concerning their investment are not certain.

Mixed Bag on Spot Bitcoin Approval

The survey indicates that 39% of the polled financial advisors believe a Bitcoin ETF will be available to United States investors this year.

The study also established that most advisors lack confidence regarding the approval of Bitcoin ETF this year. However, 88% of respondents interested in buying Bitcoin on their client’s behalf are waiting for an ETF’s availability.

 A spot Bitcoin exchange-traded fund would enable investors to incorporate Bitcoin exposure into their portfolios without purchasing and keeping Bitcoin. This means they would acquire all the market’s benefits without the overhead, such as establishing how to utilize private keys or a hardware wallet.

Nearly 60% of surveyed claimed customers have no serious interest in crypto outside their links with financial consultants. Bitwise believes this is a positive indicator for companies considering making crypto products available. 

Reduced Number Committing Funds to Crypto

Further, the survey identified a slight reduction in customers devoting funds to crypto. It reduced to 11% last year from 15% in 2022 and 16% in the previous year. However, this is still more significant compared to 2020 and 2019, when less than 10% of customers preferred a part of their portfolio in crypto.

It is critical to consider that Bitwise is not pointlessly questioning the probability of a Bitcoin ETF’s approval for trading in the U.S. The firm has an investment. In 2019, it filed its application for a Bitwise Bitcoin Exchange-Traded Fund Trust registration with the SEC, which was dismissed. 

In 2021, it refiled an application that was also rejected. However, the firm hopes the third time will be successful. It challenged the SEC’s objection in September, revised its application, and refiled in November last year. Among other changes, it will be referred to as the ‘Bitwise Bitcoin ETF.’

From October 20 to December 18, VettaFi and Bitwise gathered responses from 437 financial advisors. Analyzing the data and converting it to a refined report takes significant time. As such, the results were published some weeks following the final response. 

SEC Disclosure Reveals Final Hurdle for Spot Bitcoin ETFs Bids

Since the survey’s conclusion, additional information has been disclosed concerning what the Securities and Exchange Commission intends to see from applicants before sanctioning a Bitcoin exchange-traded fund. 

The most recent, just before Christmas, was the need for applicants to reveal approved participants in their S-1 registration. Besides, it mentioned the need for a robust preference for creating and settling shares happening in cash.

Most major applicants, such as Fidelity, BlackRock, and Cathie Wood’s Ark, have since revised their applications to address approved participants.

 Further, VanEck, Grayscale, Valkyrie, and Ark alerted the Securities and Exchange Commission about approvals from their respective exchanges, for instance, the Chicago Board Options Exchange (CboE), to start trading after getting the regulator’s green light.

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