Survey of financial advisers and Grayscale comments suggest strong support for spot crypto ETF

While the United States Securities and Exchange Commission has yet to o.k. a spot Bitcoin exchange-traded fund, a caller Nasdaq survey suggested that the offering could pb to greater adoption of crypto among fiscal advisers.

According to the results of a Nasdaq survey released connected Monday, 72% of 500 fiscal advisers would beryllium much apt to invest their clients' assets successful cryptocurrency should the SEC o.k. a spot crypto ETF merchandise successful the United States. For those already invested successful crypto products, 86% of the fiscal advisers said they planned to summation allocations wrong a twelvemonth — astir fractional already person investments successful ETFs linked to Bitcoin (BTC) futures.

“The immense bulk of advisors we surveyed either program to statesman allocating to crypto oregon summation their existing allocation to crypto,” said Jake Rapaport, Nasdaq’s caput of integer plus scale research. “As request continues to surge, advisors volition beryllium looking for an organization solution to the crypto question that present dominates lawsuit conversations.”

New Nasdaq survey of fiscal advisors (who power $26T successful assets) finds 72% of them would beryllium much apt to put successful crypto if a spot ETF were available. Also of advisors curr investing successful crypto, 86% program to summation concern and their perfect allocation is 6% of port. pic.twitter.com/3r2mxbGny9

— Eric Balchunas (@EricBalchunas) April 11, 2022

To date, the SEC has not offered immoderate denotation it plans to o.k. a spot BTC ETF anytime soon. The regulatory assemblage has rejected respective projected regularisation changes connected exchanges which would let firms to database and commercialized shares of a Bitcoin exchange-traded fund, including from the New York Digital Investment Group, Global X, and ARK 21Shares. In each rejection, the SEC stated the exchanges had not met the load nether the Exchange Act and Rules of Practice of showing the ETF would beryllium “designed to forestall fraudulent and manipulative acts and practices” and “protect investors and the nationalist interest.”

Grayscale, 1 of the adjacent plus managers apt to perceive a determination from the regulatory assemblage connected its spot Bitcoin ETF, launched a run successful February aimed astatine encouraging U.S. investors to taxable comments to the SEC. The regulator is expected to scope a determination connected Grayscale converting its Bitcoin Trust into a spot BTC ETF for listing connected NYSE Arca by July, with the nationalist person submitted hundreds of comments arsenic of April 4.

“Investors merit a prime of a spot BTC ETF and Grayscale conversion would beryllium the astir effectual and businesslike astatine doing so,” said Maryland nonmigratory Lance Lewis.

Bloomberg analysts Eric Balchunas and James Seyffart suggested successful March that the SEC could o.k. a spot Bitcoin ETF successful mid-2023 based connected a projected amendment to alteration the explanation of “exchange” wrong the regulatory body’s rules. However, Nasdaq’s survey of fiscal advisers recovered that lone 38% thought it was apt the SEC would o.k. a spot crypto ETF sometime successful 2022, with 31% saying it was unlikely.

Related: Here’s wherefore the SEC keeps rejecting spot Bitcoin ETF applications

Despite the uncertainty astir a spot Bitcoin ETF, the SEC has fixed the greenish airy to concern vehicles linked to BTC futures, including offerings from Teucrium, ProShares, VanEck and Valkyrie. Grayscale CEO Michael Sonnenshein has suggested that the regulatory body approving Teucrium’s BTC futures ETF nether the Securities Act of 1933 arsenic opposed to the 1 passed successful 1940 supports the thought that “not each Bitcoin futures ETFs are created equal”:

Therefore, if the SEC is comfy with a #Bitcoin futures #ETF, they indispensable besides beryllium comfy with a spot Bitcoin ETF. And they tin nary longer justifiably mention the ‘40 Act arsenic being the differentiating factor.

— Sonnenshein (@Sonnenshein) April 7, 2022