Advisors May Drive Bitcoin ETF Flows in USA + More News
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Registered investment advisors (RIAs) will likely drive the bitcoin (BTC) exchange-traded fund (ETF) if it’s approved in the US, according to the independent investment bank and asset management firm Needham, as reported by CNBC.
“The main driver of a Bitcoin ETF, in our view, will be RIAs,” said Needham analyst John Todaro. “With nearly half of our advisors answering that their current bitcoin offering is either nonexistent or directing clients to buy bitcoin on their own at a crypto platform, we believe this is where most new buyers would come from.”
Most surveyed advisors expect 5%-10% of clients to own a Bitcoin ETF. However, even though “advisors are currently seeing mostly disinterest from clients around bitcoin and an ETF, […] nearly all expect interest to pick up if bitcoin prices continue to increase,” Todaro said.
Additional reasons for investor enthusiasm include the upcoming Bitcoin halving, which is expected to push the price higher, and the Federal Reserve (Fed) indicating rate cuts in 2024.
Meanwhile, “any person that has not purchased bitcoin already is currently unlikely to buy a bitcoin ETF,” Todaro said. 11% of respondents who have not previously owned BTC said they are very likely or somewhat likely to buy a Bitcoin ETF.
Among existing bitcoin holders, more respondents (49%) indicated they’d prefer to buy their crypto on an exchange like Coinbase rather than through a prospective ETF (40%).
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a $1,207,830 settlement with CoinList Markets LLC.
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