IOSCO: The share of crypto investors globally has increased 6 times since 2020

The organization noted an increase in interest in the digital asset sector, despite high price volatility

10.10.2024 - 15:00

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What’s new? The International Organization of Securities Commissions (IOSCO) has said that cryptocurrencies will see a significant increase in popularity from 2020. In a new survey, 15 of the 24 jurisdictions surveyed said that 10% or more of retail investors owned cryptocurrency in 2023, with another six jurisdictions citing figures of 30% or more. By comparison, four years ago, half of the jurisdictions studied had only 1-5% of crypto investors.

IOSCO report

What else is known?

“Despite volatility in the market, which experienced a major downturn during the 2022 ‘crypto winter,’ retail investors in both advanced economies and emerging market jurisdictions continue to invest in the crypto-asset market,” the IOSCO report says.

That said, a number of challenges have remained relevant since 2020, including crypto market volatility, fraud, hacking, lack of regulations, and a lack of investor awareness of the risks and principles of digital assets.

Over the past four years, the industry has faced a number of major bankruptcies of leading companies, hacks, and fraudulent schemes, a prolonged bear market with rates falling 73% from their peaks, and increased regulatory and enforcement actions. However, despite all these events, interest in cryptocurrencies continues to grow.

For example, numerous surveys, studies, and reports have shown the growing interest of investors, especially new investors, in crypto assets. The majority of retail crypto investors are men under the age of 40.

In the United States, more than half of investors under the age of 35 are invested in cryptocurrency. The percentage of Generation Z (18-25 year olds) in the States investing in cryptocurrency is 44%.

The top reasons for investing in cryptocurrency include fear of missing out (FOMO) on profits or speculation, low cost of entry, and advice from friends and social networks.

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