Crypto still popular among young, male investors

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This article was originally published in The Chainsaw.

The Australian Securities Exchange (ASX) has released its annual Australian Investor Study right before the end of the financial year. According to the report, crypto is the most popular among Gen Z Aussie investors aged 18 to 24, with 31 per cent of the group holding on to “magic internet money”.

Gen Z investors are among those who are most interested in crypto as an emerging investment.

The study, conducted by the ASX in November 2022, surveyed 5519 Australian adults who invest or plan to invest in an asset over the next 12 months.

The result? Gen Z investors are among those who are most interested in crypto as an emerging investment.

Crypto by popularity and attitude

Overall, 51 per cent or 10.2 million Australians hold investments in 2023, making us “a nation of investors”, the ASX claims. Crypto is one of the top 10 most popular investments among Australians, with 15 per cent of investors owning crypto. However, this still puts crypto behind “traditional” assets, such as direct Australian shares (58 per cent), residential investment property (35 per cent), term deposits (28 per cent) and ETFs (20 per cent).

The ASX has also observed that, compared to other investors, crypto investors exhibit “a clear difference in attitude towards financial risk”. Crypto investors are “more likely to accept higher variability with potential for higher returns (20 per cent versus 10 per cent)“. In other words, we’re all diamond hands, baby.

Unsurprisingly, Bitcoin and Ethereum are the most widely known and traded crypto assets as of May 2023, according to the report.

Crypto by amount

Of the 15 per cent of Australian investors holding crypto, 31 per cent are Gen Z Aussies. So, how much money do these investors pour into crypto? A small amount compared to other assets in their portfolio, says the ASX report. The median value of an Aussie’s crypto holdings is $5100, or just a baby 3 per cent of their entire portfolio.

Nearly one third (29 per cent) of crypto investors have between $500 to $5000 invested in crypto. One-fifth (21 per cent) have $5000 to $20,000 invested in crypto, and only 3 per cent of all crypto investors have at least half a million dollars in crypto holdings.

Crypto by gender

The term “crypto bros” exists for a reason. The ASX’s study reinforces the perception that the crypto scene is male-dominated. Of all Aussie crypto investors, 69 per cent are male, and 31 per cent are female.

Male investors also dump much more money in hopes of going to the moon. Bros invest a median of $8300 in crypto, compared to women, who invest $1700.

“This could be explained by the difference in attitude towards financial risk between men and women,” notes the report. “Another potential driver for the gender disparity in money invested is their respective investment goals, with males showing greater interest in maximising capital growth (17 per cent for males versus 11 per cent for female),” the ASX’s report adds.

Crypto exchanges still dominate

FTX burned to the ground? Binance is in hot water? Doesn’t matter, apparently. This is because crypto exchanges are still the preferred route for investors to buy and sell crypto. Fifty-two per cent of next-generation investors say a dedicated crypto exchange is where they go to get their hands on magic internet money. An overwhelming 82 per cent of pre-retirees use crypto exchanges, too.

“Comparing survey responses to this question before and after the [FTX] crash revealed it didn’t dampen enthusiasm for trading via dedicated cryptocurrency exchanges. Surprisingly, the number of crypto investors who prefer to trade cryptocurrencies this way rose from 67 per cent to 78 per cent,” the ASX confirmed.

Read the rest of this article on The Chainsaw.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. Investors should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

The Age and The Sydney Morning Herald are owned by Nine, which also owns The Chainsaw.

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