A survey of U.S. financial advisors found that most believe approval will not come until at least 2025.

While many cryptocurrency holders eagerly await the approval of a Bitcoin exchange-traded fund in the United States, a group of financial experts appears to be pessimistic about this possibility. According to a survey by ETF issuer Bitwise published on January 4, only 39% of financial advisors in the US believe a Bitcoin ETF will be approved this year.

The survey results show that financial advisors are generally skeptical of the commission’s decision to approve a spot Bitcoin exchange-traded fund (ETF). There are several reasons for this lack of security. The first and most important factor is the SEC’s cautious and conservative handling of cryptocurrency-related items in the past.

Skeptical Advisors: The Fate of the SEC’s Bitcoin ETF

As mentioned above, financial advisors appear pessimistic about the SEC’s approval of the Bitcoin spot ETF this year, according to a survey by Bitwise and VettaFi.

On January 4, Bitwise posted the following on X:

“LESS THAN HALF OF ALL ADVISORS EXPECT A SPOT BITCOIN ETF IN 2024…

In a surprising development, only 39% of advisors believe a spot bitcoin ETF will be approved in 2024. By contrast, Bloomberg ETF analysts peg the likelihood of a January approval at 90%.

On January 10, several financial institutions, including BlackRock, Inc., VanEck, and Valkyrie Investments, will learn the regulator’s judgment on their Bitcoin spot ETF applications. Among the more than 400 respondents, independent registered investment advisors (RIAs) made up almost half of the sample. The remaining group included institutional investors, financial planners, stockbroker representatives, and other investment specialists. Matt Hougan, Chief Investment Officer at Bitwise, said the following:

“If you want to evaluate where cryptocurrencies are heading, you should talk to the professionals who control approximately half the wealth in the United States.”

Hougan highlighted a notable discrepancy in expectations between specialists who actively monitor the evolution of ETFs and financial advisors. He highlighted that there is significant latent demand in the market and noted that around 90% of advisors are delaying investments in bitcoins until the launch of an ETF. This highlights the significant difference in expectations and the possibility of an increase in interest should an ETF become available.

“There exists a huge gap in expectations between advisors and those who make a living monitoring ETF development,” Hougan said in a statement.

Investment Hesitation: Advisors Wait for Bitcoin ETF

The survey suggested that many advisors are eager to see an ETF approved, even if they don’t think it will happen anytime soon. Some participants said they wanted to buy Bitcoin for the first time for themselves or their clients. When these particular advisors were asked if they would prefer to buy before or after an ETF is approved, 88% responded “after a US spot Bitcoin ETF is approved.”

Meanwhile, unlike the Matrixport report, which predicted that the SEC would reject Bitcoin spot ETF proposals in January 2024, the price of Bitcoin has not responded to the Bitwise survey results and has continued to rise, rising a 3% on the past day to trade at $43,956 at the time of writing.

Final changes had to be submitted to the SEC by December 29, 2023, and issuers that failed to meet this deadline would be ineligible for early January approvals.

By Leonardo Perez