Demand for crypto investment products is rising, study says
By Robert Davis
20:24, 17 December 2021
A new study by Grayscale Investments, a global digital currency management firm, showed that investors are increasingly bullish on the adoption of bitcoin and other digital currencies.
Out of the 1,000 investors Grayscale surveyed, more than 26% reported holding cryptocurrencies in their portfolio and more than half said they were “interested” in the asset class. Another 55% of respondents said they invested in bitcoin within the last 12 months.
The 2021 Bitcoin Investor Study also said that for the first time more than half of respondents consider bitcoin to be a long-term store of value investment rather than a currency.
“While it is encouraging to see attitudes towards crypto continue to evolve, it is still early days for this industry,” Michael Sonnenshein, CEO of Grayscale Investments, told Capital.com in an email. “It is incumbent on all of us to remain focused on educating the investing public, so investors across generations and demographics can access this once in a generation opportunity”.
Demand for bitcoin
The study also measured considerable growth in the demand for bitcoin. Approximately two-thirds of the investors who reported having holdings have been “hodling”, or “holding on for dear life”, for more than a year. Another 77% reported being willing to invest in the asset class via an exchange-traded fund.
Meanwhile, the market for bitcoin investment products continued to expand in 2021 and now account for 59% of all the available crypto-related products.
“It is becoming increasingly difficult for investors to ignore bitcoin as its price continues to rise,” the study said.
What is your sentiment on BTC/USD?
As demand is rising, the study said investors are also finding new ways to access cryptocurrency assets.
Crypto investors are still primarily young, male and white but the study found increased interest among more senior age groups. For example, the nearly half of the 55 to 64-year-old age group reported they would “definitely” or “probably” consider bitcoin investments.
Another 53% of female respondents reported the same interest in crypto investments, up from 47% in 2020, the study said.
More than half of these investors are now finding their way through trading apps such as Coinbase or eToro compared with just 35% of respondents who still purchase their crypto from exchanges.
Future seems bright
While increased demand could be good for asset prices in the long run, the study found that the demand is not driven by greed or the desire for capital gains.
It also found that investors want to learn more about the asset and its underlying technology, which suggests that the market may soon reach a new level of maturity.
“With such a high demand for further education, providers, advisers and other investment gatekeepers should consider how they are meeting investor demands to better understand this new asset class,” the study said.