A financial research company, Investment Trends, conducted a new study on behalf of the Australian Securities Exchange (ASX) and the study has revealed that young Australians are highly interested in crypto investment.
It also showed that 46% of “next-generation investors” (investors between 18 and 20 years old) said they preferred stable returns, while 31% invested in digital assets.
The study revealed that despite their strong dislike for risk-taking, almost one-third of young Australian investors have traded digital currencies or hold active crypto portfolios. It further suggests that while young Aussies show more interest in crypto investment, the 25-40-year-olds hold the most digital assets.
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ASX Australian Crypto Investor Report
The ASX evaluated Australian investors’ attitudes towards investment risks by age group. The regulator wrote that “The apparent financial conservation of younger investors is at odds with their level of cryptocurrency investment.”
The evaluators revealed that younger people invested in virtual currency due to the desire to do things differently from their parents. They also observed that most of the 1.2 million new investors who held investment portfolios since 2020 are tech-savvy and have social media connections.
Furthermore, the study stated that the median cryptocurrency holding for “next-generation investors” is $2,700. The amount represents 6% of their total portfolio, double the 3% crypto holding for all other investor age groups.
While young investors held the most crypto proportional to their portfolios, the “wealth accumulators” (investors aged 25-49) owned the most. The portfolio of wealth accumulators accounted for 69% of the total investment in digital assets.
Meanwhile, older investors aged 50 and above accounted for only 19% of the overall crypto holdings. The latest report is the first time the ASX considered virtual currency as an asset class in its Australian Investor Study. Therefore, the report addressed the subject cautiously, adding that it’s still considering whether investors can fully accept digital currencies in mainstream investing.
However, the study admitted virtual assets remain an in-demand option among investors despite their volatility. It revealed that 29% of all “intending investors” (those who don’t currently own crypto but plan to) are considering “certain” crypto investment categories within the next 12 months.
Binance De-Banked In Australia
Meanwhile, in another development, Australia’s largest retail bank Commonwealth Bank announced that it is taking a step backward from digital assets transactions. The bank said it would be declining payment to some crypto exchanges, revealing that it’s in a bid to protect customers.
Commonwealth Bank’s announcement comes a few weeks after Binance’s Australian subsidiary faced regulatory challenges.
On May 18, Binance Australia announced that it would suspend all Australian dollar-denominated services in June. The decision came after its local third-party payments provider quit supporting the exchange. On the same day, Australia’s second-largest bank, Westpac, banned customers from transacting with Binance.
by Kent Glory via Bitcoinist.com
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