A recent study conducted by financial research firm, Investment Trends, on behalf of the Australian Securities Exchange (ASX) has revealed a surprising trend among young Australian investors.
According to the study, approximately one-third of these young investors currently possess or have engaged in trading cryptocurrencies despite considering themselves more “risk averse” compared to older investors.
The ASX survey focused on Australian investors in the 18 to 24 age range, often referred to as the “next generation” category. The study found that 31% of these investors have significant investments in cryptocurrencies, even though 46% of them expressed a preference for stable returns. The median cryptocurrency holding for young investors was found to be $2,700, representing a 6% allocation within their investment portfolios. This allocation is twice as high as the average 3% observed among other age groups.
Interestingly, while young investors have the highest relative cryptocurrency holdings, it is the “wealth accumulators,” investors within the 25 to 49 age range, who have the largest share of digital assets, accounting for 69% of all cryptocurrency investments. In contrast, investors aged 50 and above represent only 19% of cryptocurrency owners.
The study revealed a notable contradiction between the cautious financial behavior displayed by younger investors and the size of their Bitcoin holdings. The researchers identified the desire to lead a lifestyle distinct from their parents’ as the primary motivation behind the young demographic’s investment in cryptocurrencies. The study also emphasized the strong tech proficiency and active engagement with social media among the 1.2 million new investors who entered the investment landscape in 2020.
This ASX study marks the first time cryptocurrencies have been included as an asset class, prompting a cautious stance on the subject. The study acknowledged the ongoing debate regarding the full acceptance of cryptocurrencies in mainstream investing.
However, the researchers noted that despite the volatility associated with cryptocurrencies and uncertainties surrounding their mainstream adoption, the asset class appeals strongly to new investors. The study revealed that 29% of intending investors contemplate making a cryptocurrency investment within the next 12 months.
The study also highlighted concerns about centralized cryptocurrency exchanges as potential obstacles to the progress of crypto investing. Recent legal actions taken by the United States Securities and Exchange Commission (SEC) against major exchanges Coinbase and Binance are prominent examples of the challenges faced by these centralized exchanges.
Notably, Australian cryptocurrency exchanges are also facing the brunt of regulatory difficulties. In May 2023, Binance Australia suspended all Australian dollar-denominated services after its local payments provider received instructions to cease supporting the exchange.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
