Even Advisors Who Like Bitcoin Got it Wrong

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Advisor Perspectives recently asked some folks if they are recommending the new spot bitcoin ETFs, and 27 financial advisors, CIOs, professors/economists, industry vendors and pundits replied.

Several had lots to say but didn’t get around to answering the question, and others gave qualifying responses. Only three bluntly said “yes” to the question, including only two of the 12 participating financial advisors. These low affirmative rates (11% overall and 16% among the advisors) are sharply different from every advisor survey conducted over the past couple of years, and as recently as the past few weeks.

Although Advisor Perspectives’ article effort wasn’t intended to represent an industry-wide sampling, casual readers might conclude that there’s little interest in the new spot bitcoin ETFs, or bitcoin and crypto generally. Worse, the readers might not realize that 37% of the respondents (10 of 27) made factually incorrect statements about bitcoin and crypto in their efforts to justify their opposition to bitcoin.

Scott Bondurant, founder and CEO of Bondurant Investment Advisor, wrote, “Bitcoin is a currency.” That notion is out of date by 10 years. While Bitcoin’s inventor, Satoshi Nakamoto, wanted it to replace fiat currencies worldwide, that experiment failed. Bitcoin is now viewed, and has been for a decade, as a store of value. Stablecoins achieve Satoshi’s currency goal: There’s $140 billion in stablecoins, and they represented 76% of all crypto trading volume in 2023. More than 100 governments worldwide are also creating or exploring their own stablecoins, called Central Bank Digital Currencies. Eleven countries have already launched one, and 21 more are conducting pilot programs (including China, Russia, India, Australia, Japan, South Korea, Sweden, South Africa, Saudia Arabia and Israel).