Financial Advisors Want Spot Crypto ETFs But Suspect SEC Won’t Budge: Report

Key Takeaways

  • A new Nasdaq survey revealed that 72% of financial advisors would be more likely to invest in crypto if a spot crypto ETF were available in the U.S.
  • The report also showed that most advisors were bullish on crypto, with 86% saying they expected to increase their crypto allocation over the next 12 months.
  • The U.S. SEC has rejected all applications for a spot crypto exchange-traded product despite the demand.

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Around 72 % of fiscal advisors would invest more into crypto if crypto smudge ETFs were available in the U.S, according to a newfangled survey by the New York City-based stock exchange Nasdaq. Despite their bullish position on crypto, advisors were not convinced the Securities and Exchange Commission would approve such a product this year .

fiscal Advisors Would Buy More Crypto if Spot ETFs Were Available

New data suggests that the absence of spot crypto ETFs could be what ’ s standing between crypto and increased institutional borrowing.

According to a Monday Nasdaq report, which surveyed 500 U.S.-based fiscal advisors who were either investing or considering investing in crypto, 72 % of advisors would be more probably to invest in the asset class if a topographic point crypto ETF was available in the state. Unlike futures-based crypto ETFs, which track the price of the fundamental assets using derivatives and must therefore roll their positions ahead regularly, spot ETFs hold crypto directly and can hold their positions indefinitely .
Despite many tries by celebrated institutions and fiscal management firms to launch touch or physical crypto exchange-traded products in the U.S., the Securities and Exchange Commission has thus army for the liberation of rwanda rejected all such applications, citing immaturity and lack of consumer protective covering in the crypto marketplace, among other reasons. To that point, Nasdaq ’ s newly report revealed that fiscal advisors weren ’ t particularly affirmative about the U.S. seeing a spot crypto ETF any time soon. only 38 % of the surveyed advisors said that they think it is probable that the SEC would approve such a merchandise by the end of the year, while 31 % thought the opposite. interestingly, the reputation besides showed that 86 % of the advisors already investing in crypto expected to increase their allocations over the following 12 months, while 0 % planned to decrease. Half of the same group said they were already using Bitcoin futures ETFs to invest their node ’ second money, with a big majority of advisors showing proclivity towards index funds for broad crypto exposure. Commenting on the report card in a imperativeness acquittance, the lead of digital asset index research at Nasdaq, Jake Rapaport said that fiscal advisors are “ expressing firm interest ” in crypto-related indices. He said :

“ Over the death decade, fiscal advisors have been focused on shifting assets into exponent funds. As they incorporate digital assets into their investing strategies, they are expressing potent pastime in a exchangeable fomite that can offer broad asset class exposure for their clients. ”

finally, entirely about 10 % of advisors surveyed reported being very knowledgeable about crypto, with lone 9 % saying they felt very convinced in advising their clients on the submit. conformity rules and restrictions were reported by advisors as the most significant hurdle to crypto invest .
disclosure : At the time of writing, the author of this patch owned ETH and several other cryptocurrencies .

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