Despite the enthusiasm from young Australian investors, almost 70% of all crypto investments are held by "wealth accumulators."
Groundbreaking evidence suggests that nearly one-third of young Australian investors have ventured into cryptocurrency investment over the past year.
An Australian Securities Exchange (ASX) investor survey revealed a fascinating divergence between the self-professed financial conservatism of young investors and their adventurous forays into the unpredictable world of cryptocurrencies.
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Specifically, about 31% of these so-called "next generation investors," a term used by the report to refer to the 18-24 age group, embraced cryptocurrencies despite 46% expressing a preference for "stable returns."
The study's authors hypothesized that this phenomenon is linked to a desire to have different investment experiences from their parents. Notably, "many of the 1.2 million new investors who've taken up investing since 2020 are tech-savvy and connected to social media."
The analysis indicated that the median cryptocurrency holding among "next-generation" investors was around $2,700.
Nonetheless, the study found that in terms of total cryptocurrency ownership, investors within the "wealth accumulators" group (25-49 age) dominated, accounting for a whopping 69% of all digital asset investments. By contrast, those aged 50 and above held just 19% of the total crypto ownership.
This research marked the first inclusion of cryptocurrency as an asset class in ASX's Australian Investor Study.
Despite the ubiquitous volatility linked to cryptocurrencies, the study affirmed their popularity among investors. It highlighted that 29% of prospective investors are contemplating a dive into crypto investment in the coming year.
Nevertheless, the study pinpointed centralized crypto exchanges as a potential speed bump on the crypto investment highway, drawing attention to the legal woes faced by crypto exchange behemoths Coinbase and Binance in the United States.
The findings of the ASX report, based on a comprehensive online survey of 5,519 Australian adults conducted in November 2022, underscore the continued, albeit cautious, embrace of cryptocurrencies by young investors in Australia.
