More than 300 financial advisors would be willing to invest even more in Bitcoin (BTC), provided a spot cryptocurrency exchange-traded fund (ETF, a fund that can be traded on the stock exchange, just as if it were a stock) is finally approved in the United States. A fact that it is believed could materialize next year.
According to a Nasdaq survey, at least 360 investment professionals would be willing to shell out more money to the Bitcoin ecosystem, so they are just waiting for the entry into circulation of this financial instrument. For 38% of respondents, the spot ETF is likely to materialize its arrival next year, while 7% dismiss that prospect. 31% say it will be a failure and 24% were cautious.
The survey, which polled 500 financial advisors, found that 86% of advisors who had pre-allocated their investments in bitcoin and other cryptocurrencies plan to increase their allocations in the coming year. They also highlighted that 50% of them already own bitcoin futures ETFs, while the remaining 28% will do so within 12 months.
On the educational front, 10% of the advisors surveyed felt informed about bitcoin and the rest of the ecosystem, but just 9% felt confident to express their abilities to advise on this emerging market. This, according to the study, reveals a palpable educational gap between traditional finance and the new bitcoin ecosystem. Still, the vast majority of advisors surveyed (98%) expressed a desire to keep learning about the space, opening the door to more Bitcoin knowledge.
Granted, the survey represents a minuscule portion of the entire universe of financial advisors, but there is still a sense that there are professionals who, once they enter the ecosystem, detect value for their clients and, right away, be in it for the long haul.
For Jake Rapaport, head of digital asset index research at Nasdaq, as more institutional investors enter the market, the more interest there will be in vehicles that increase exposure to assets like bitcoin.
That most institutional investors are waiting just for a bitcoin spot ETF to get deeper into the ecosystem is no small feat, especially when you consider that, in the past, large institutional moves have caused bounces in the price of the pioneering cryptocurrency.
Now, and when the spot ETF is likely to arrive as soon as next year, anticipation rules among investors. It is slated for 2023, according to analysts of these financial derivatives Eric Balchunas and James Seyffart, who said that fact would trigger a possible rise in the price of BTC.
The arrival of institutional investors will always be good for the bitcoin ecosystem, because in addition to what they generate in its price, they contribute to confidence in the market on the part of other companies, which are only waiting for a hint of security to dive headlong into the emerging ecosystem.