Despite identifying themselves as more “risk averse,” almost a third of young Australian investors hold or have traded cryptocurrencies in the past year, according to a recent study by the Australian Securities Exchange (ASX). The study found that 46% of “next generation investors” – aged 18 to 24 – prefer “stable returns,” yet 31% have invested substantially in cryptocurrencies like BTC and ETH.
The report suggests that younger investors gravitate towards cryptocurrencies out of a desire to do things differently from previous generations and the fact that many of the 1.2 million new investors since 2020 are tech-savvy and connected to social media. The median cryptocurrency holding for these investors stands at $2,700, which is 6% of their total portfolio value. This figure is double the 3% crypto allocation of older investors.
While younger investors may own more cryptocurrencies in relation to their portfolio size, it is the 25 to 49-year-olds who hold the most cryptocurrency overall – accounting for 69% of the total investment in digital assets. In contrast, investors aged 50 and above constitute only 19% of overall crypto ownership.
Despite its popularity, there is still uncertainty about whether cryptocurrencies can become fully integrated into mainstream investing. However, the study noted that 29% of all “intending investors” – those who have yet to invest in crypto – are considering some form of investment within the next 12 months.
Nevertheless, regulatory challenges and issues with centralized crypto exchanges remain a potential cause for concern. For example, the legal action taken by the US Securities and Exchange Commission against exchange giants Coinbase and Binance may act as an impediment to the future growth of such investments.
It is still uncertain whether the growing interest in cryptocurrencies heralds a change in mentality among younger investors. As the sector develops and solidifies its place in the financial world, it remains to be seen if this trend will continue or if it is merely a passing fad. Regardless, the data suggests that younger investors are not as risk-averse as they claim to be and are actively exploring alternative investment opportunities.
Source: Cointelegraph
