Tim Cook, the CEO of Apple, recently revealed that he has invested in cryptocurrency. And he's not the only wealthy American who has -- 68% of high-net-worth adults do, according to a recent Motley Fool survey. That's about 4.7 million Americans, each with a net worth of at least $1 million, who have invested in crypto.
Why have more than two-thirds of American millionaires invested in cryptocurrency?
Most believe it will generate strong returns and that it's a hedge against inflation. A majority of millionaire cryptocurrency investors see it as a safe store of value or believe in the underlying philosophy of crypto, or both.
High-net-worth crypto investors also believe that cryptocurrency is going to the moon and maybe further. Two-thirds have at least half of their portfolio in cryptocurrency, and a similar percentage say cryptocurrency will make up a larger share of their portfolio in the next five years.
But not all American millionaires are on board with crypto.
Read on for a deep dive into how high-net-worth investors are approaching cryptocurrency, including what they're buying, how long they hold, and what keeps some of them away from the crypto scene.
Key findings
- 68% of high-net-worth individuals -- roughly 4.7 million Americans, each with a net worth of at least $1 million -- own cryptocurrency.
- Two-thirds of American millionaires who own cryptocurrency believe it will generate strong returns, 60% see it as a safe store of value, and 61% believe in the underlying philosophy of crypto.
- Bitcoin is owned by 60% of high-net-worth individuals who have invested in cryptocurrency, while 55% own Ethereum.
- 86% of high-net-worth cryptocurrency owners have invested in a memecoin like Dogecoin or Shiba Inu.
- 71% of high-net-worth cryptocurrency owners would use a credit card that offered cryptocurrency rewards, and 58% would use a bank account that stores cryptocurrency.
- Two out of three millionaire cryptocurrency investors have at least half of their portfolio in cryptocurrency.
- 59% of high-net-worth individuals who own cryptocurrency expect to allocate more of their portfolio to it over the next five years.
- 81% of high-net-worth individuals who own cryptocurrency are likely to buy more in the next year. 50% of those who don't own cryptocurrency are likely to buy in the next year as well.
- Lack of education about cryptocurrency is seen as the biggest barrier to investment by high-net-worth individuals.
Two-thirds of American millionaires hold cryptocurrency in search of strong returns
68% of high-net-worth individuals (those with a net worth of $1 million or more), about 4.7 million Americans, own cryptocurrency.
The most cited reason for investing in cryptocurrency is a belief that cryptocurrency will generate strong returns.
About 60% of American millionaire crypto investors bought cryptocurrency because they believe it's a safe store of value. A similar percentage invested because they believe in the underlying philosophy of cryptocurrency, such as decentralized finance.
Just over 50% of high-net-worth individuals who have invested in cryptocurrency cited its potential to be a hedge against inflation.
