2024 Cryptocurrency Investor Trends and Preferences Survey

Cryptocurrency is back on the rise, propelled by approval of the first Bitcoin exchange-traded funds (ETFs), but The Motley Fool Ascent's 2024 Cryptocurrency Investor Trends Survey shows that crypto is still struggling to attract investors beyond Gen Z and millennial men.

Despite 23% of respondents -- a higher share than any other year -- stating they're "very likely" to buy cryptocurrency, respondents with the most interest and trust in cryptocurrency remain young males, many of whom have already invested in crypto.

The introduction of new, regulated Bitcoin ETFs may not do much to bring new demographics into crypto.

• The Motley Fool Ascent's cryptocurrency survey shows that groups most excited about the ability to gain exposure to Bitcoin through those ETFs are those most likely to already be invested or interested: young men.
• Those who are least likely to be swayed by the new Bitcoin ETFs -- older respondents and women -- are already skeptical about crypto.

The top reasons for crypto skepticism are the beliefs that it's a bad investment, it's too late to invest, and that it's too expensive to invest in.

Read on to understand the most important trends in the crypto space, as the industry enters a pivotal moment.

43% say they're likely to buy crypto in the next year

Forty-three percent of respondents to the The Motley Fool Ascent's Cryptocurrency Investor Trends Survey said they are somewhat likely or very likely to buy cryptocurrency in the next year. That's a record high.

Twenty-three percent -- another record high and up 20% from 2021 -- said they are very likely, while 20% said they are somewhat likely.

The majority of those likely to buy crypto have already invested

While interest in cryptocurrency among respondents is at a record level, most of it is coming from respondents who already own cryptocurrency or have exposure to Bitcoin through an ETF. Those respondents were much more likely to say that they're likely to invest in crypto in the coming year.

Among respondents who have never owned cryptocurrency, just 3% said they're very likely to buy next year and only 13% said they're somewhat likely. Eighty-three percent said they're unlikely to purchase crypto in the coming year.

On the other hand, 62% of respondents who currently own crypto and 48% who have invested in a Bitcoin ETF said they're very likely to buy more this year.

Respondents who previously owned cryptocurrency but don't hold any right now are most on the fence about buying this year. Eleven percent of that group say they're very likely to invest this year, 40% are somewhat likely, 27% are somewhat unlikely, and 22% are very unlikely.

Men and younger respondents are more likely to buy crypto than women and older respondents

Male respondents, particularly Gen Z and millennials, are much more likely than women to own cryptocurrency and be interested in investing in it in the future.

That demographic trend has been repeatedly observed, including by Pew, JPMorgan Chase, and Morning Consult.

As Bitcoin has rallied to a new high, the industry's ability to expand beyond the young male demographic will be instructive as to whether its growth is sustainable and if volatility can be reined in.

Record high 75% of crypto owners view it as investment

A record high 75% of respondents who own cryptocurrency view crypto as an investment. Most respondents don't own crypto to make secure payments, to buy NFTs, or because they think it will replace currencies -- despite those being among the most hyped alleged use cases for cryptocurrencies.

Whether the shift in crypto owners' attitudes is a boon or dampener for the industry remains to be seen. Much of the initial attraction to crypto was driven by the idea that it could become a global currency and vehicle for secure payments. Those ideas have been slow to take hold while retail investors and now financial institutions increasingly see cryptocurrencies as just another investment class.

The top reasons why crypto skeptics won't invest

The most-cited reasons why respondents who don't own cryptocurrency haven't invested are security concerns (36%), not knowing what to do with it (35%), and not understanding how to buy crypto (33%).

Twenty-nine percent of respondents who don't own cryptocurrency haven't invested because they don't think it will generate a good return. That's despite Bitcoin hitting record highs. Eleven percent think crypto is too expensive to buy.

Twenty-four percent of non-investors won't buy crypto because they think it's a scam and 28% haven't invested due to the lack of a clear regulatory framework for crypto. Those concerns are likely fueled by crypto's scandal-filled 2023.

No single reason drives crypto skepticism, which suggests that the industry will have to overcome multiple barriers to attract new retail investors. The most-cited obstacles are fundamental and signal that there's a trust gap that will need to be bridged for new investors to enter the market.

Bitcoin ETFs may not pull in many new retail crypto investors

The SEC's approval of Bitcoin ETFs spurred the cryptocurrency to record highs, but it may not attract many new investors.

The respondents that were most likely to say that the new Bitcoin ETFs make them more likely to invest in crypto are those most likely to be already invested: those who own crypto, male respondents, and millennials.

Those most likely to say the ETFs will have no impact on their willingness to invest in crypto -- or make it less likely that they'll invest -- are those who have never owned crypto: women, Gen X, and boomers.

There is a small group of crypto owners (11%) who are less likely to invest due to the approval of Bitcoin ETFs. Those investors may be turned off by the new government oversight of Bitcoin.

44% would consider investing in crypto through their retirement account

Forty-four percent of respondents would consider investing in cryptocurrency through their retirement account, down from 52% in 2022 despite Bitcoin hitting record levels.

The decline in interest may be attributable to crypto's volatility and the slew of scams, scandals, and security concerns that rocked the industry -- the most notable being the collapse of FTX and revelations of fraud perpetrated by its founder Sam Bankman-Fried.

The respondents most interested in adding crypto to their 401(k)s and IRAs are current and previous crypto investors, with millennials, Gen Z, and men most willing to consider. Non-owners, women, and older generations are least likely to be interested in putting crypto in their retirement funds.

Being able to store crypto in a bank account may encourage some to invest

Fifty-seven percent of respondents, including 40% of those who have never owned crypto, said that being able to store crypto in their bank account would make them consider investing. That suggests that safety, security, and regulation are keys to bringing new investors into the crypto space.

Still, the percentage of respondents who would consider buying crypto if they could put it in their bank account is down from 62% in 2022 and 70% in 2021, indicating that crypto's integration with more stable financial institutions isn't a golden ticket to adding investors.

81% of crypto owners would consider a credit card with crypto rewards

Crypto credit cards unsurprisingly draw serious interest from crypto investors and some interest from those who have never invested. Twenty-eight percent of that group would consider a credit card that provides crypto rewards.

That suggests that crypto credit cards could be an entry point for some crypto skeptics.

There are a limited number of crypto credit cards and they are unique in that rewards may be taxable if a gain is realized from them.

Confidence in crypto understanding is on the decline

Eighteen percent of respondents claim to understand how cryptocurrency works "very well," down from 24% in 2022 and 22% in 2021. A record high 33% said they don't understand how crypto works at all, up from 19% in 2022 and 24% in 2021.

Crypto owners, men, and millennials are most confident about their crypto knowledge while women and older respondents were more likely to say they have no or little understanding. It would appear that those groups are following the wisdom of only investing in what they understand.

Crypto owners and millennials are the only groups who believe the government has done enough to regulate

Government regulation of crypto is a hot button topic that divides crypto holders, 65% of whom believe there's enough regulation now, and 82% of non-owners believe that there isn't enough government regulation.

Respondents who previously owned crypto but don't currently hold any may feel as though they were spurned by insufficient regulation. Sixty percent of those respondents don't think there's enough regulation. This is one of the few topics for which that group breaks with current crypto investors.

The debate over cryptocurrency regulation in the United States centers on whether crypto assets can be considered securities, which would subject them to the same regulations as stocks and other securities. In a blow to proponents of regulation, a district court of appeals in 2023 ruled that cryptocurrency functioned as a security when sold to institutions, but not when traded on exchanges.

Interest in crypto remains, but the biggest boosters are already invested

Retail investors surveyed by The Motley Fool Ascent showed record interest in crypto, but there are signs that the industry is struggling to grow its pool of investors beyond Gen Z and millennial males.

The Motley Fool Ascent's 2024 Cryptocurrency Investor Trends Survey reveals that Gen Z and millennial men remain most enthusiastic towards crypto while women, Gen X, and baby boomers are still skeptical of investing.

The introduction of Bitcoin ETFs has drawn some interest from women and older Americans, but existing investors are the largest proponents of them.

Integrating cryptocurrency with existing, trusted financial institutions and products like banks and credit cards could help some overcome their crypto skepticism, but isn't a silver bullet for mass adoption.

Sustainable, long-term, and less volatile growth in the crypto industry may depend on whether it can correct its demographic imbalance and show would-be investors that crypto is secure, easy to buy, and has real value beyond speculation.

Sources

• JPMorgan Chase (2022). "The Dynamics and Demographics of U.S. Household Crypto-Asset Use."
• Morning Consult (2024). "Tracking Trends in Cryptocurrency."
• Pew (2022). "46% of Americans who have invested in cryptocurrency say it's done worse than expected."

Methodology

The Motley Fool Ascent distributed surveys via Pollfish on March 6, 2024, May 25, 2022, and May 6, 2021. Results were post-stratified to generate nationally representative data based on age and gender. Pollfish employs organic random device engagement sampling. Each survey was composed of 2,000 adult Americans.