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Marketing Heats Up, But Survey Says Interest in Bitcoin ETFs Low
- Bitwise’s brief ad, the “most interesting man in the world” hints at Bitcoin’s relevance amid the SEC’s delay in approving Spot Bitcoin ETFs.
- Despite the crypto community’s buzz around Bitcoin ETFs and market rallies on adoption speculation, actual interest and impact remain uncertain.
- So far global launches have shown mixed results and limited immediate appeal to non-Bitcoin investors.
“A Word to The Wise, From A Man of Few Words”
It’s only a 15-second clip and not many words are spoken, but the few that are have quite the impact. While the United States Securities and Exchange Commission (SEC) continues to delay the approval of Sport Bitcoin Exchange Traded Funds (ETFs), there is no indication that this is stopping investment managers from starting to advertise their potential products.
Bitwise is the first to kick things off with a short ad, featuring the “most interesting man in the world,” Jonathan Goldsmith, known for other prominent ads like the Dos Equis beer campaigns.
As mentioned, not many words are spoken, only: “You know what’s interesting these days,” Goldsmith continues after a pause, “Bitcoin.”
There are of course several firms awaiting SEC approval for their Bitcoin ETFs – it is interesting though to see ads hitting the market before an actual approval.
Anticipation of ETFs is High – or Is It?
However, while there’s noticeable excitement in the crypto community about the ETFs, and the market appears to have rallied on speculation of adoption, it remains unclear whether this adoption will truly meet expectations. Additionally, Spot Bitcoin ETF launches outside of the United States have seen mixed results.
A Needham survey, conducted by analyst John Todaro, explored interest in a Bitcoin ETF and its comparison with other Bitcoin investment methods. In the survey over 20 financial and wealth advisors, 75 Coinbase users, and over 200 other people were asked about their interest in buying Bitcoin through an ETF.
It revealed that Registered Investment Advisors (RIAs) have limited Bitcoin-related offerings, mostly guiding clients to buy directly from crypto exchanges, invest in crypto stocks, or use the Grayscale Bitcoin Trust. However, most advisors would prefer an ETF option for their clients, anticipating that 5-10% of clients would own a Bitcoin ETF by 2024-2025.
Client interest in Bitcoin and a Bitcoin ETF however is currently low, but advisors expect it to increase if Bitcoin price rises. The survey also found that those who haven’t bought Bitcoin are unlikely to invest in a Bitcoin ETF, with only few considering it likely. The introduction of a Bitcoin ETF is not expected to attract significant new capital unless Bitcoin prices rise or other factors boost retail interest.
Any person that has not purchased Bitcoin already is currently unlikely to buy a Bitcoin ETF. Just 11% of respondents who have not owned Bitcoin in the past described themselves as very likely or somewhat likely to buy a Bitcoin ETF.
John Todaro, Needham Analyst Bitcoin owners slightly prefer buying directly on a crypto exchange/platform over an ETF offered by an equity brokerage, with this preference varying with age. About 40% of survey respondents would choose a Bitcoin ETF, while 49% prefer using a crypto platform.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
