The analyst polled over 20 financial and wealth advisors (RIAs), 75 Coinbase users, and over 200 people to find out who would buy a bitcoin ETF if it were approved, and whether they would prefer bitcoin exposure through an ETF, bitcoin-linked stocks, trusts, or buying bitcoin directly on a crypto platform like Coinbase or Robinhood.
According to Todaro’s survey results, RIAs currently have limited bitcoin offerings for their clients; the majority responded that their current bitcoin strategy is to guide clients to buy directly via crypto exchange (25%), crypto stocks (15%), or GBTC (10%), but most would prefer an ETF if one existed, and the majority of advisors expect 5-10% of their clients to own a bitcoin ETF when it becomes available in 2024 and 2025.
Clients are mainly uninterested in bitcoin and an ETF, according to advisors, although nearly all expect interest to increase if bitcoin values rise further.
According to Todaro’s survey results, anyone who has not already acquired Bitcoin is unlikely to purchase a Bitcoin ETF. Only 11% of respondents who had never held bitcoin before said they were very likely or somewhat likely to buy a bitcoin ETF.
According to Todaro’s findings, an ETF launch is unlikely to attract further capital flows unless it corresponds with higher bitcoin prices/and other engagements, which encourages increased retail interest in the asset.
Individuals who have owned bitcoin marginally preferred buying bitcoin via a crypto exchange/platform to a prospective ETF through an equity brokerage, albeit this varies by age.
40% would prefer to buy an ETF, while 49% preferred to use a crypto platform, indicating that an ETF is unlikely to eat into COIN’s higher-margin trading activity.