A quarter of investors see crypto as an attractive store of value – study

Almost a third of UK investors are now positive on bitcoin compared with 25% in Q4 2021.

Data from eToro’s latest Retail Investor Beat reveals that UK crypto investors are increasingly committed to cryptoassets as a long-term investment theme despite macro headwinds and uncertainty in global markets.

According to the social investing network’s latest data, almost a third of UK investors (29%) now consider cryptoassets and digital payments a long-term investment theme, up from 18% in Q4 2021.

While the overall percentage of people that say they invested in crypto fell slightly from 21% to 19%, those that continue to invest are increasingly upbeat on its long-term prospects.

A quarter of respondents (25%) now regard cryptoassets as an attractive store of value while 16% now see it as an effective inflation hedge and almost a third of investors (30%) are positive on bitcoin in particular.

Equally, the number of respondents that regard cryptoassets as a ‘transformational’ asset class has fallen from 29% in Q4 2021 to just under a quarter (24%) suggesting that more and more people have a conventional outlook on potential returns comparable to more traditional asset classes.

The data from the latest survey revealed the number of respondents that were planning to invest in crypto in the next twelve months remained stable at almost one fifth (19%).

Simon Peters crypto market analyst at eToro comments: “It has been a testing time for all investors. A combination of rocketing inflation, rising interest rates and major geopolitical uncertainty has made for an unsettled picture. “Cryptoassets haven’t been immune from this uncertainty as we have seen with price volatility. However, our data clearly shows that an increasing number of UK crypto investors believe that cryptoassets are not only here to stay but can, and should, play an important part in a long-term and diversified investment portfolio.”

Peters continues: “The fact that more people regard crypto as an attractive store of value, an inflation hedge and see it as an investment for the long-term are all indicators of more maturity around crypto as a whole.„

“With regulators in the UK working hard to establish a regulatory regime that is fit for purpose and more people reporting that they are convinced of the viability and durability of crypto, even during a global market downturn, it is clear credibility and positive sentiment surrounding cryptoassets continues to increase in the wider investment community.”

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Survey research conducted by Opinium from 10 to 23 March 2022. In total, 8,500 retail investors sampled across 12 countries, 1,000 in each: UK, US, Germany, France, Australia. 500 in the following: Italy, Spain, Netherlands, Denmark, Poland, Romania and the Czech Republic. Retail investors were defined as self-directed or advised and had to hold at least one investment product including shares, bonds, funds, investment ISAs or equivalent. They did not need to be eToro users.