Bitrabo Editorial
Gemini, a cryptocurrency exchange, has published its 2024 global crypto report that sheds light on investor sentiment and trends in the digital asset market, especially in light of the newly launched Bitcoin and Ethereum ETFs.
Institutional Investments Surge with Bitcoin & Ethereum ETFs
According to the report released on Tuesday, the crypto market has rebounded significantly in 2024 after two challenging years. Long-term investors are keen to acquire more digital assets, particularly after the approval of Bitcoin and Ethereum ETFs, despite various hurdles.
Notably, Gemini believes that former investors are eager to reengage with the market as spot Bitcoin and Ethereum ETFs draw in billions in institutional investment.
The report demonstrates that crypto adoption has remained steady in important markets, with 21% of Americans and 18% of UK residents claiming to own cryptocurrencies. Meanwhile, ownership in France rose from 16% to 18%, whereas Singapore experienced a slight decline from 30% to 26%. Marshall Beard, COO of Gemini, commented on these trends:
Over the years, crypto investors have shown remarkable resilience through various market cycles, and the recent downturn was no different. The launch of spot crypto ETFs in the US and advancements towards sensible regulations worldwide have set the stage for robust growth as retail investors either return or start investing in crypto.
Regulatory Uncertainties Hinder Crypto Growth
The report identifies several trends and challenges facing the crypto landscape. A significant deterrent for nearly 40% of non-crypto owners in the US and UK is the uncertainty surrounding regulations. In France, 32% voiced similar apprehensions, while almost half (49%) in Singapore shared worries about regulatory issues.
In terms of investment plans, 57% of current crypto owners expressed a desire to invest 5% or more of their portfolios in digital assets. Furthermore, over a quarter (26%) of former holders showed interest in returning to the market, highlighting a potential increase in capital flow.
Nevertheless, the report notes a notable gender divide in crypto ownership. In 2024, 69% of crypto holders identified as male, while only 31% were female, a shift from 58% and 42% in 2022. However, women engaging in the crypto market are just as likely as their male counterparts to adopt a buy-and-hold strategy.
Additionally, the significance of ETFs in bolstering growth within the crypto industry is underscored in the report. In the US, 37% of cryptocurrency holders indicated that part of their assets is held through Bitcoin or Ethereum ETFs, while 13% rely solely on these investment vehicles for their crypto holdings.
For the first time, cryptocurrency has become a key topic in US election discussions. According to the report, 73% of crypto owners mentioned they would consider candidates’ stances on digital asset policies when casting their votes in the next presidential election, marking a notable rise in the political relevance of crypto.
As of now, Bitcoin is priced at $56,700, showing little change since Tuesday, as the leading cryptocurrency has struggled to maintain a position above $57,000 over the last day.
Image courtesy of DALL-E, chart data from TradingView.com