Recent research indicates that more young Aussies hold crypto assets despite viewing themselves as risk averse. The report revealed that close to a third of young investors in Australia have traded or held cryptocurrency throughout the last year.
More Young Aussies Adopt Crypto
According to Australian investor research conducted by the Australian Securities Exchange (ASX), there has been a spike in young Aussies embracing digital assets despite their risk aversion stance. The report revealed that 46% of young investors aged between 18-24 described themselves as investors requiring “stable returns,” with 31% significantly investing in cryptocurrency.
The report added that the financial conservatism of young Aussie investors does not align with their newfound investment in digital assets. According to the researchers, the surge in cryptocurrency investments among younger generations can be attributed to their aspiration for a different path from their parents.
In addition, the report added that a considerable number of the 1.2 million individuals who entered the investment arena since 2020 possess solid tech knowledge and skills and maintain active connections within social media. The ASX’s financial analysis company, Investment Trends Research, further revealed that the average “next generation” investors maintain a cryptocurrency holding of $2,700.
This holding represents a substantial 6% proportion of their overall investment portfolio. This allocation is twice as much as the 3% cryptocurrency allocation observed among investors of other age groups.
Even though the investment portfolios of younger investors have a higher proportion of cryptocurrency holdings, the wealth accumulators (those between the ages of 25 and 49) also possess a large share of crypto assets. Interestingly, this group accounted for 69% of the total investment in digital assets.
On the other hand, the crypto portfolios of investors aged 50 and above constitute a mere 19% of the overall portfolio, indicating a significant generational disparity in crypto ownership in Australia.
Is Crypto An Asset Class In Australia?
Meanwhile, the latest report marked the first-time digital assets have been recognized as an asset class in the ASX’s study. Accordingly, the analysts approached the subject cautiously but emphasized that there is still an ongoing debate among players within the mainstream financial sector over whether crypto can be categorized as an asset.
Nonetheless, the researchers acknowledged that the crypto industry continues to attract investors’ interest despite its inherent volatility. The study disclosed that 29% of “prospective investors” – individuals currently not engaged in any form of investment – are actively considering various cryptocurrency investments within the next 12 months.
This statistic highlights the growing cryptocurrencies’ appeal and influence among investors. Remarkably, the obstacles posed by centralized crypto exchanges have emerged as a significant concern and can potentially hinder investments in the crypto space over the long term.
Moreover, crypto exchanges in Australia have had their fair share of challenges like their counterparts in the US. For instance, Binance Australia announced the suspension of all Australian dollar-related services earlier this month following a regulatory order that stopped its local payments provider from providing support for the exchange.
At the same time, Australia’s second-largest bank, Westpac, banned its customers from conducting transactions with the exchange. On June 15, Commonwealth Bank – Australia’s largest financial institution, announced that it might stop enabling payments to some crypto platforms citing the prevailing high risks of scams in the industry.
