Crypto Ownership Among Retail Investors Surges Since 2020

According to Cointelegraph, crypto ownership has seen a significant rise among retail investors since 2020, as reported by the Board of the International Organization of Securities Commissions (IOSCO). The report, released on October 9, highlighted that 15 out of 24 surveyed jurisdictions reported up to 10% or more of retail investors owning crypto last year. Additionally, six jurisdictions reported up to 30% or more crypto ownership. This marks a steep increase from 2020 when half of the responding jurisdictions estimated between 1% to 5% or less of investors owned crypto. IOSCO noted that the crypto-asset space has continued to evolve since 2020. Despite market volatility, including a significant downturn during the 2022 'crypto winter,' retail investors in both advanced economies and emerging market jurisdictions have continued to invest in the crypto-asset market. The report emphasized ongoing risks and concerns related to market volatility, lack of investor understanding, insufficient regulations, and the prevalence of scams and fraud. These concerns have remained consistent with those identified in the 2020 report. The report also underscored the increased risks and challenges in the crypto market since 2020, calling for stronger investor protection and education measures. Over the past four years, the crypto market has experienced several high-profile failures and bankruptcies, a prolonged bear market with a 73% drop from previous highs, and a surge in scams, hacks, and investor losses. Despite these challenges, retail investors continue to show a keen interest in crypto assets. Numerous surveys, studies, and reports over the last four years have indicated growing interest in crypto-assets, particularly among new investors. The report noted that retail investors who have bought crypto tend to be younger, typically under 40 years old, and predominantly male. In the United States, nearly three in five investors under 35 years old have considered a crypto investment, with over half having already invested. Around 44% of the Gen Z cohort in America, aged 18 to 25, started their investment journey with crypto. New investors are more likely to invest in crypto compared to established investors, according to IOSCO. The report cited the main motivations for investing in crypto as fear of missing out (FOMO) or speculation, low cost of entry, and advice from friends and social media.