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Growing confidence and a surge in Robinhood usage are driving the growth of cryptocurrency investing
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Cryptocurrencies are on the rise. Earlier this month, data from CivicScience found the percentage of Americans invest in cryptocurrencies it rises by more than three points from 2022 to 11% while all other forms of investment decrease. What could be the reason why consumers become more willing to invest in cryptocurrencies?
The increase in trust likely has a role to play, as CiviciscScience’s ongoing tracking of consumer trust in cryptocurrency shows that those with at least an average level of trust have increased five percentage points to 28% since the end of June 2023 However, despite the growing confidence, the vast majority (71%) of consumers who are aware remain skeptical with little to no confidence.
Weight in: In your opinion, is it worth investing in cryptocurrencies?
Bitcoin ETFs likely contribute as well
In January, the Securities and Exchange Commission approved the first round of Bitcoin ETFs, which offer a potentially more accessible option for investors looking to get into the world of cryptocurrencies. First CivicScience survey October found that 19% of those familiar with bitcoin ETFs were at least “somewhat” likely to invest in one when it gained approval. That percentage has now jumped ten points to 29% in the latest June data1.
What are the motivators and detractors of cryptocurrency investing?
CivicScience data allows for an even deeper exploration into the minds of cryptocurrency investors and their motivations for investing in non-traditional assets. Investment strategy takes precedence: long-term investments are the most likely motivation to invest in cryptocurrencies, followed by short-term investments. Fewer investors are driven by a desire for independence from government involvement or as a hedge against economic instability.
On the contrary, among the main obstacles that consumers say are holding them back from investing in cryptocurrencies are a lack of understanding and concern about its volatility and, above all, the belief that it is not a legitimate form of investment.
Another possible driver of the recent growth in cryptocurrency investing is the growing popularity of the Robinhood investing app. According to CivicScience tracking, the percentage of U.S. adults using or planning to use Robinhood rose to 23%, up from 17% in 2021. Additionally, the app has significant growth potential, with 45% of adults reporting I still have never heard of Robinhood. of Robinhood2.
This growth is significant because Robinhood offers its users the ability to invest in cryptocurrencies in the palm of their hands, while the platform has seen a substantial increase in cryptocurrency investment volume this year. Robinhood is doubling down on this boom and increasing its cryptocurrency offerings with a recent $200 million acquisition of the Bitstamp cryptocurrency exchange. Data from CivicScience shows this is likely a smart move for Robinhood, as 1 in 2 of all cryptocurrency investors say they already use or plan to use the app.
Cast your vote: Do you think cryptocurrencies have a promising future?
While many Americans remain wary of cryptocurrency and Bitcoin has faced recent turbulence, the sector shows signs of growth. Greater trust and the growing use of platforms like Robinhood pave the way for a more robust cryptocurrency investment landscape.