- Grayscale’s survey indicates that 40% of American investors are considering adding digital assets to their portfolios in the future.
- Younger generations, especially Gen Z and Millennials, are showing significant ownership and interest.
In a recent survey titled “2024 Election: The Role of Crypto,” conducted by crypto asset manager Grayscale, findings indicate that 40% of American investors are considering adding digital assets to their investment portfolios in the future.
Despite the setback caused by the collapse of the FTX crypto exchange, the survey suggests a shifting trend in the growth of the digital assets industry. Grayscale notes that while the post-FTX landscape hasn’t shown an increase in the percentage of Americans currently holding crypto, demographic trends, and other findings provide a note of optimism, with a significant portion of investors expressing intentions to include crypto in their future portfolios.
Inflation Concerns Bring US Closer to Crypto
According to a recent survey conducted by crypto asset manager Grayscale, inflation is perceived as the most significant concern among Americans. Interestingly, respondents familiar with digital assets expressed an increased interest in purchasing Bitcoin (BTC) as a hedge against inflation and currency debasement.
Grayscale notes that historical patterns indicate a surge in interest in assets like Bitcoin during times of inflation and economic uncertainties. The limited supply of Bitcoin, often compared to a digital version of gold, positions it as a store of value asset.
Notably, respondents more acquainted with crypto demonstrated a higher likelihood of expressing interest in Bitcoin in response to inflation or macroeconomic events. This suggests a dual significance: individuals familiar with Bitcoin recognize its role as a macro asset, and there may be a need for further education to enhance understanding and drive broader mainstream adoption of emerging technologies like Bitcoin.
Crypto Held by Diverse Age Groups
Grayscale’s recent survey unveils that nearly 7 out of 10 respondents possess some form of investment asset, with 19% confirming ownership of cryptocurrencies. Notably, men (23%), Black/Hispanic voters (26%/32%), and younger voters (31% of Gen Z) are prominent crypto owners. These demographics also show heightened interest in crypto due to inflation, with percentages reaching 25% for men, 36% and 39% for Black and Hispanic respondents, and 40% for Gen Z compared to 6% of Baby Boomers.
Despite the post-FTX period witnessing no growth in overall crypto ownership, a positive outlook emerges from demographic trends. Encouragingly, 40% of investors express their intention to include cryptocurrencies in their future portfolios.
In terms of generational ownership, a higher percentage of Gen Z and Millennials own crypto (31% and 35%, respectively) compared to equities (17% and 24%). Furthermore, a majority of these younger voters believe in the future dominance of “Crypto and blockchain technology in finance” (54% and 58%). Additionally, 68% of respondents aged 18-34 express a likelihood to invest in crypto if clearer policies and regulations are established.
Anticipating developments in 2024, Grayscale foresees potential tailwinds for Bitcoin. Factors contributing to this optimism include the 2024 Bitcoin halving, potential approval of a spot Bitcoin ETF in the U.S., and potential Federal Reserve rate cuts.
Grayscale is one of the forerunners in the application for converting its GBTC product to spot Bitcoin ETF.
