A recent report from the International Organization of Securities Commissions (IOSCO) reveals a significant uptick in cryptocurrency ownership among retail investors since 2020. Released on October 9, the report indicates that approximately 30% of retail traders in six surveyed jurisdictions owned crypto assets last year, a dramatic increase from the 1% to 5% ownership range reported in 2020.
Despite market volatility, including the notable downturn during the 2022 “crypto winter,” interest in digital currencies has continued to rise. Retail investors from both developed and emerging economies are eager to invest in cryptocurrencies, with younger traders—particularly men under 40—driving this trend.
In the United States, nearly 60% of traders aged 35 and younger have considered or already invested in cryptocurrencies, with 44% of Gen Z individuals (ages 18-25) beginning their investment journeys with digital assets.
However, IOSCO has raised alarms about the risks associated with cryptocurrency investments, including market volatility, fraud, and regulatory gaps. The report underscores the urgent need for enhanced investor education and protection to navigate these challenges effectively.
Key motivations for investing in cryptocurrencies, as identified in the report, include fear of missing out (FOMO), speculative trading, low entry costs, and recommendations from peers or social media influencers.
Despite the backdrop of high-profile collapses, fluctuating markets, and a rise in scams, the appeal of cryptocurrencies remains robust, with new investors leading the charge into this evolving financial landscape.
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