Majority of Investors Would Consider Cryptocurrency Exposure
Six out of 10 investors with no current exposure to digital currencies like Bitcoin and Ethereum would consider including them in their investment portfolios.
That is according to a worldwide survey of investors by the deVere Group, which finds that seven in ten people who do hold cryptocurrencies plan to increase their exposure in the next 12 months. The survey respondents included investors residing in the US, UK, UAE, Australia, Qatar, Switzerland, Hong Kong, Spain, France, Germany and South Africa.
“The fact that more than 60% of people with currently no exposure to cryptocurrencies would consider including them into their investment portfolios is striking,” deVere Group CEO, Nigel Green, said. “It underscores how, despite what many financial traditionalists have opined, that a majority of investors are now open to consider the opportunities that the likes of Bitcoin, Ethereum and Ripple could present.”
When asked if they would consider including one cryptocurrency in their investment portfolio, 62% with no current exposure said yes, 26% replied no, and 12% do not know. Some 71% of investors who do include digital currencies in their portfolios said they are looking to increase this exposure over the next year, 25% said that they would not, and 4% cited that they did not know.
“An increasing general awareness of cryptocurrencies and how they work, plus a growing sense that cryptocurrency regulation is now inevitable, are perhaps the main reasons why such a high percentage of people are now open to looking at the possibilities of crypto for their portfolios.”
He continues: “The survey also highlights that the majority of those who do currently hold some cryptocurrency as part of their investment portfolio believe that despite ongoing volatility, the potential rewards will outweigh the potential risks. It suggests that these investors expect good returns in 2018 from cryptocurrencies, view them as a good longer-term investment, and that the market will eventually stabilise.”
This comes after a report from Juniper Research revealed that digital currency transactions were likely to surpass $1trn (£0.77trn) last year – more than 15 times the level recorded in 2016. It highlighted how cryptocurrencies now typically see daily trades well in excess of $2bn, with the total transaction value in the first half of 2017 surpassing $325bn. However, these currencies remain volatile, with Bitcoin experiencing a 64% fall in value after an all-time high in December last year, before rebounding again slightly.
“Cryptocurrencies remain a gamble – they are very much ‘unchartered waters’ assets and caution must be exercised,” Green continued. “However, that said, I do believe that in today’s digital world, there is a need for digital currencies. “One or two of the existing ones will succeed, whether it’s Bitcoin, Ethereum, Ripple, Litecoin, Dash, or any of the others, or not, of course remains to be seen.”