Cryptocurrencies as digital assets have attracted many investors due to their promising potential. Besides serving the functions of fiat currency, that is, enabling anyone to send and receive payment, crypto assets have other uses.
They can also be traded, and the funds can be stored in digital wallets. These wallets allow investors to keep their funds protected from inflation.
The Majority of Crypto Investors are HODLers
According to a recent report by Gemini Trust Company LLC, a cryptocurrency exchange, many who invest in crypto assets use it as a store of value. In a survey of 6,000 people worldwide, the exchange discovered that 65% of investors are HODLers.
Approximately two-thirds of investors hold on to their crypto assets regardless of market volatility. It implies that these investors see crypto as digital gold and hold on to it as a store of value.
Interestingly, the term HODL means “hold on for dear life.” The remaining one-third are those who engage in trading and use digital assets as a payment option.
The sampled respondents also revealed other significant insights into investors’ crypto adoption. About 38% of people in the UK have refused to get aboard the crypto train due to concerns about regulatory clarity.
32% of French respondents share similar reservations. Almost half (49%) of Singapore’s respondents were concerned with regulatory issues despite its perceived crypto-friendliness.
This uncertainty has prevented potential individual and institutional investors from entering the crypto market. They remain scared of the possible financial and legal consequences on their investments.
Gender Gap and Shift in Crypto Investment
Another interesting revelation of the report, is the wide gap between male and female investors. In 2022, 58% of crypto owners identified as male and 42% as female.
Two years later, the figures switched to 69% and 31% respectively. Although more men own crypto assets than women, the number of women HODLers is higher than their male counterparts.
That implies that women invest in crypto assets for the long term, regardless of market fluctuations. Further analysis of the Gemini report reveals that many investors embraced crypto this year.
These investors got comfortable with digital assets after the approval of exchange-traded funds (ETF) by the U.S. Securities and Exchange Commission (SEC). In a notable move, the U.S. SEC approved the first 11 Bitcoin spot ETFs on January 10, 2024.
The approval has helped fuel the adoption of crypto assets. The Gemini report reveals that 37% of crypto owners now hold some crypto through an ETF. Notably, 13% said they entered the market exclusively through ETFs.
This highlights that financial instruments have provided a simpler and more regulated way for people to invest in cryptocurrencies.
Bitcoin ETFs and the Growing Adoption of Crypto Assets
Financial experts say Crypto ETF products have proven to be game changers in the Web3 ecosystem. Barely six months after spot Bitcoin ETF started trading, spot Ethereum ETF also gained regulatory approval in the U.S.
Meanwhile, crypto assets have been recognized globally, namely, in countries like Hong Kong, Australia, Japan, and El Salvador, to name a few. The growing acceptance of digital currencies has made it a topical issue not just in the financial space but also in the political sphere.
Political watchers say cryptocurrency has become a notable subject matter in the US presidential elections for the first time. Their position aligns with the Gemini report.
It indicated that 73% of crypto owners in the U.S. would vote for the next president based on their stance on digital assets. Many experts see this as a sign that crypto assets are gaining global recognition and acceptance.
