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Why 64% of Crypto Traders Prefer to Hold Ahead of Bitcoin ETF Approval

2 mins
Updated by Bary Rahma
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In Brief

  • A new survey highlights a strong preference among crypto traders for long-term holding, with 64% favoring this strategy ahead of potential Bitcoin ETF approvals.
  • The survey reflects a blend of trust in both centralized and decentralized cryptocurrency exchanges among respondents, alongside an emphasis on DeFi trading.
  • The anticipation surrounding Bitcoin ETF approvals is influencing trading behaviors, reflecting an optimistic outlook towards the integration of traditional finance.
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Many traders are adopting a long-term holding strategy as the crypto market evolves, especially with the looming approval of Bitcoin ETFs (exchange-traded funds) on the horizon.

A recent survey unveiled a comprehensive outlook on how crypto traders navigate the market. It shed light on trading behaviors, motivations, and the broader perspective of traders.

HODLing Ahead of Bitcoin ETF Approval

The survey reveals that most respondents (63.8%) engage in trading on centralized and decentralized exchanges. It showcases a balanced trust in different trading platforms. Interestingly, a small fraction (10.3%) of the respondents could not discern the types of exchanges they were using.

This data underscores the blend of expertise and the learning curve that exists among crypto traders.

A notable insight is that incentives provided by DeFi projects significantly influence 62.1% of respondents to engage in DeFi trading. Other motivating factors include the potential for high returns (59.8%) and access to a wide range of tokens (52.1%).

These incentives, coupled with the broader potential of DeFi, are driving engagement and shaping trading behaviors.

One of the core aspects highlighted by the survey was the respondents’ preference towards long-term holdings. 64% of the respondents endorsed this strategy, which aligns with the growing anticipation of the approval of Bitcoin ETFs.

Read more: How To Buy Bitcoin (BTC) and Everything You Need To Know

The holding strategy, commonly called “HODLing” in the crypto market, reflects a long-term optimistic outlook toward the potential growth and mainstream adoption that Bitcoin ETF approval could usher in. This approval is perceived as a significant stride towards melding traditional finance mechanisms with crypto, opening new horizons for investors and the broader financial market.

“The timing of spot Bitcoin ETF approvals remains unclear but should happen within months and most likely before Jan. 10, 2024, the final deadline of Ark Invest and 21Shares applications. This is the earliest among the various final deadlines faced by SEC across spot Bitcoin ETF applications,” JPMorgan analysts led by Nikolaos Panigirtzoglou wrote.

As the SEC inches closer to approving Bitcoin ETFs, as indicated by recent developments involving Grayscale Investments, the holding strategy adopted by crypto traders signifies a blend of caution and optimism.

Still, SEC Chair Gary Gensler emphasized that the federal agency may take some time to approve any spot Bitcoin ETFs.

“They’ll come potentially to the five-member commission. I’m not going to prejudge them but I don’t have anything on timing. They all have various different filing dates,” Gensler said.

Top crypto platforms in the US | February 2024

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Bary Rahma
Bary Rahman, a talented journalist, graduated from New York University with a degree in Journalism. Skilled in SEO, she has worked with CNN, showcasing her investigative skills and storytelling abilities. In addition to her journalistic accomplishments, Bary has contributed her expertise as a content writer for Binance, crafting insightful articles on the dynamic crypto industry. Her unique fusion of journalism and SEO makes her a versatile and highly respected figure in the industry.
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