According to the latest ASX Australian Investor Study, approximately 15% of Australians have invested their wealth in cryptocurrencies. This figure is similar to the 17% recorded during the bull market in 2021. The study showed that young Australians are more inclined towards the cryptocurrency industry, with 31% of them being HODLers.
The study also highlights that males (69%) make up the larger share of investors. Most individuals have invested between $340 and $3,400 in digital currencies, while only 10% have invested over $67,000.
Youngsters are significantly more interested in the crypto market than older generations. 31% of the “next generation investors,” or those with an average age of 21, have bought Bitcoin or altcoins. According to the study, younger individuals are more “risk-averse than their older counterparts,” which is why they are more likely to tolerate crypto’s volatility and enter its ecosystem.
ASX stated that the majority of investors understand the cyclical nature of investing. 29% of those surveyed said that a fall of 20% in their portfolio balances is a risk they understand could happen, while another 36% said they would wait to see if the situation improved. “Next generation investors” are excited about new technologies and sometimes wish to get involved with things their parents would avoid.
High-value investors (HVIs) also find the sector attractive. 33% of HVIs own digital currencies, with their median investment being nearly $88,000.
The study suggests that the overall figures could increase should “intending investors” (around 1.33 million people) decide to invest in crypto in the next 12 months. This portion represents people who have not made any investments but are considering doing so. 29% of them admitted they would select cryptocurrencies above all other options.
Investing in shares and real estate remains the most common choice for Australians. Term deposits, ETFs, and international shares round up the top 5, whereas crypto ranks sixth.
The study shows that ongoing uncertainty in the crypto market has caused a severe investor outflow among Australians since Independent Research estimated in November 2022 that over 25% of the locals were HODLers. Similar to ASX, last year’s analysis determined that youngsters were more likely to have bought digital assets. In comparison, only 10% of those above 65 years old have done so.
Crypto awareness was high, with almost 90% of those surveyed knowing about Bitcoin’s existence. Nearly 43% had some knowledge about Ethereum (ETH), while Tether (USDT), Dogecoin (DOGE), Ripple (XRP), Solana (SOL), and Cardano (ADA) were also popular.
The ASX Australian Investor Study shows that younger generations are more interested in the cryptocurrency market than older generations. The study suggests that the overall figures for Australian investors in crypto could increase should “intending investors” decide to invest in crypto in the next 12 months.