Cryptocurrencies have continued to crush different milestones are they hope to set their price levels high once more. Following the downturn that occurred earlier this year, there has been a lot of debate over whether it will still be possible for coins to deliver the type of outsized returns that investors are used to getting.
Ideally, the skepticism tends to come from newbie investors when an asset class doesn’t seem to be performing as it should. These people are the newest to get in on the movement, and they could be feeling a tad skeptical about investing in something for the first time.
No Fear From New Investors
However, this doesn’t seem to be the case with crypto. Earlier this month, a CNBC report explained that newer investors are more likely to invest in cryptocurrency. Kate Rooney, a reporter for the news medium, explained that they had conducted a survey of new investors, and the tide is shifting significantly towards cryptocurrencies.
According to the report, investors who have entered different markets since 2020 are more than twice as likely to invest in crypto than any other asset class - compared to more experienced traders. The report also showed that more than a third of these investors believe strongly that cryptocurrency prices will still soar higher before the year ends.
In general, 26 percent of all investors in the survey claimed that they now hold cryptocurrencies as part of their portfolio. This came in just second to individual stocks, which ranked at 32 percent. Of course, ownership of individual stocks has become much easier thanks to the increased popularity of services like Robinhood and eToro, which give users easy access to stock holdings.
The report also showed some demographics data, with 1 in 10 Americans now saying that they own crypto. Besides this, almost 50 percent of respondents believe that crypto is much riskier than other asset classes. However, a significant portion of them remains resolute in their desire to own crypto even with the possible risks associated.
Crypto is also seen as a much riskier choice for people over the age of 35. Many of these people tend to be more careful with their finances as they are entering a stage in their lives where stability matters more than anything else. So, it is understandable that they might feel that way towards crypto. However, this also shows that crypto is more appealing to members of the younger generation - leaving room for more adoption in the future.
Financial Institutions Putting Themselves in Place
The growing crypto adoption is one that even traditional banks are now coming to understand and embrace. This especially showed earlier this month, when banking giant Wells Fargo filed for a Bitcoin fund. The company filed a Notice of Exempt Offering of Securities with the Securities and Exchange Commission (SEC) earlier this month, claiming that it wants to launch the FS NYDIG BITCOIN FUND I. The fund will be a partnership between Wells Fargo, an alternative asset manager called FS Investments, and the New York Digital Investment Group (NYDIG) - a digital asset investment company.
Amongst other things, the notice indicates that Wells Fargo Clearing Services will get placement and servicing fees for everyone who invests in the fund. While the fund is yet to make a sale, Wells Fargo is looking to keep it open for over a year. Wells Fargo is targeting some of its wealthier clients, and the company is looking to give them easy Bitcoin exposure.
Interestingly, NYDIG - one of its partners - has also worked with JPMorgan on a crypto project. Earlier this month, JPMorgan quietly opened six crypto funds for investors, intending to grant them optimal crypto exposure. Created in partnership with NYDIG, the “Stone Ridge Bitcoin Strategy Fund” offers investors Bitcoin exposure through futures markets.
The new fund is in addition to the Grayscale Bitcoin Fund, Ethereum Trust, Bitcoin Cash Trust, and Ethereum Classic Trust. JPMorgan also offers access to the Osprey Bitcoin Trust. Sources claimed that JPMorgan’s investment advisors are not allowed to promote the crypto funds. But, they are free to make appropriate transactions once clients request access to them.
Besides these banks, names like BNY Mellon and Bank of America have also offered crypto investment opportunities. In fact, recent research from Blockdata showed that 55 of the top 100 banks globally by assets under management now have some form of crypto exposure. While the investment cuts across direct and indirect crypto investments, it shows significant adoption from banking giants.