Investors Embrace Cryptocurrency: Over Half Prepared to Allocate 5% or More to Bitcoin and Ethereum
A recent report by Gemini has revealed that a growing number of cryptocurrency holders are increasingly incorporating digital assets into their investment portfolios, indicating a broader acceptance of cryptocurrencies in mainstream finance.
The 2024 Global State of Crypto report from Gemini showed that 57% of cryptocurrency investors are comfortable allocating 5% or more of their investment portfolios to digital assets. Marshall Beard, the Chief Operating Officer at Gemini, noted the resilience of crypto investors across various market cycles, including the most recent downturn.
The report, which surveyed investors in the United States, United Kingdom, France, and Singapore, also shed light on the impact of regulatory clarity on the adoption of cryptocurrencies. In the US and UK, 38% of non-crypto owners cited regulatory uncertainties as a deterrent to investing in digital assets. Interestingly, this percentage increased to 49% in Singapore, underscoring the global challenge posed by regulatory concerns.
The introduction of spot crypto Exchange-Traded Funds (ETFs) for Bitcoin and Ethereum in the US has created new avenues for investment opportunities. The report highlighted that 37% of US cryptocurrency holders have some exposure to crypto through an ETF, with 13% exclusively owning crypto through this investment vehicle.
Beard emphasized the positive impact of spot crypto ETFs in the US and the progress made in regulatory frameworks worldwide, positioning the industry for significant growth as retail investors re-enter the crypto market or venture into it for the first time.
Looking ahead, industry professionals and investors interested in exploring these trends and their implications can gain valuable insights at Benzinga’s upcoming Future of Digital Assets event scheduled for November 19.
The report from Gemini underscores the increasing comfort level of cryptocurrency investors with incorporating digital assets into their portfolios, signaling a broader acceptance of cryptocurrencies in traditional investment strategies. Regulatory clarity continues to play a crucial role in shaping investor sentiment towards digital assets, with the introduction of spot crypto ETFs in the US offering new investment avenues for crypto holders. As the industry moves towards thoughtful regulation globally, the stage is set for robust growth in the crypto market, attracting both seasoned investors and newcomers seeking to capitalize on the evolving landscape of digital assets.
