According to a recent research conducted by Nasdaq, 72% out of 500 financial advisors will be more likely to invest client funds in digital assets if the US watchdog greenlights a spot ETF. Among those already part of the market, 86% said they will increase their exposure over the next 12 months.
Spot Bitcoin ETF Could Attract More Investors
Last year, the US Securities and Exchange Commission (SEC) greenlighted the ProShares Bitcoin Strategy futures-backed ETF, ticked BITO. The product became the first of its kind in the US, which generated huge enthusiasm in the space.
However, the largest economy still lacks a spot cryptocurrency ETF. Recently, Nasdaq determined that if such a product is offered, it could create a fresh wave of investors among financial advisors. Specifically, 72% answered they will enter the crypto ecosystem once a spot ETF goes live.
Despite their strong interest, only 38% believe such a product will see the light of day this year.
Some of the surveyed advisors have already invested in the asset class. 86% said they will increase their allocations in the following year, while no one intends to reduce them. Of the same group, 50% already invest in Bitcoin futures ETFs, and 28% plan to start doing so in the next 12 months.
Crypto adoption is highest among registered investment advisors with 34%. At the same time, 19% of the independent broker-dealers and 17% of wirehouse advisors admitted investing in the market.
Jake Rapaport – Head of Digital Asset Index Research at Nasdaq – summarized the results of the study:
“The vast majority of advisors we surveyed either plan to begin allocating to crypto or increase their existing allocation to crypto. As demand continues to surge, advisors will be looking for an institutional solution to the crypto question that now dominates client conversations.”
The List of Rejected Spot BTC ETFs
While the top financial regulator of the States approved the BITO futures-backed ETF, it has halted the ambitions of several firms to launch a spot Bitcoin ETF. Such is the case with the global investment manager VanEck.
Last year, the company was close to introducing the first such product (in the USA) but eventually, the SEC rejected it. The government agency claimed that VanEck was unable to address previous hurdles, which were “designed to prevent fraudulent and manipulative acts and practices” and “to protect investors and the public interest.”
NYDIG is another organization that intends to enable investors to buy or sell shares that track the price of the world’s biggest cryptocurrency. However, earlier this year, the SEC delayed the initiative.
Anthony Scaramucci’s firm – SkyBridge Capital – was also waiting for the Commission’s green light for a while before, eventually, it was rejected.