A new survey by Needham shows that demand for the Bitcoin Exchange Traded Fund (ETF) may not be as high as hyped.
The survey reveals that registered investment advisors (RIAs) will be the main driver of Bitcoin ETF flows if approved in the US. However, retail customers show little or no interest in crypto investing, according to the survey.
With market expectations that the first U.S. spot Bitcoin ETF could be approved in January, Needham said investors will decide whether to gain exposure to BTC through ETFs, crypto-related stocks or trusts, or purchase the cryptocurrency directly on a trading platform such as Coinbase or Robinhood. He researched.
The survey, which included twenty financial advisors, 75 Coinbase users, and more than 200 individuals, found that the potential ETF would best serve advisors due to their limited ability to offer Bitcoin to their clients today. “In our view, the main driver of a Bitcoin ETF would be investment advisors,” Needham analyst John Todaro said.
Despite falling 7% at the start of the week, BTC rebounded in the fourth quarter as voices grew louder for a Bitcoin ETF. Investors are also looking forward to Bitcoin's halving event in the spring, which is expected to push the Bitcoin price higher in the coming months.
The FED's indication that there may be at least three interest rate cuts in 2024 also increases the recent excitement. BTC is up 59% in the last two months and will rise 157% in 2023.
However, the survey also showed that investors who have not already purchased Bitcoin are now less likely to purchase BTC simply because an ETF is available.
“It is unlikely that anyone who has not already purchased BTC will purchase a Bitcoin ETF right now,” Todaro said.
Among existing Bitcoin holders, the majority (49%) said they would prefer to purchase their crypto through an exchange such as Coinbase rather than a possible ETF (40%).
*This is not investment advice.