(Kitco News) – Investing in the crypto industry has been male-dominated since the asset class burst onto the scene in 2010, but that’s starting to change. Cryptocurrency adoption among women is on the rise, according to a recent survey by Israel-based investment firm eToro.
In the company’s recently published Retail Investor Beat Q4 2022 reportthe eToro team found that “crypto is now the second most widely held asset class by women after cash, suggesting it is succeeding where traditional financial markets have sometimes failed to bring more women to the table.”
Survey data showed that women’s crypto ownership saw a significant increase between the third and fourth quarters of last year, rising from 29% to 34%, while the increase in adoption among men was only 1%. The survey included approximately 10,000 global retail investors in 13 countries.
Late last year, well-known crypto promoter Tim Draper predicted that the price of Bitcoin would reach $250,000 by the end of 2023, largely due to an increase in adoption by women.
“My hypothesis is that since women control 80% of retail spending and only 1 in 7 bitcoin wallets are currently held by women, the dam is about to burst,” Draper told CNBC. The results of the eToro survey show that it could understand how women’s adoption of crypto could benefit the industry.
Crypto saw a pick-up in adoption across the board in Q4 despite the asset class’ poor performance in 2022. The proportion of retail investors who own crypto dropped from 36% to 39% quarter to quarter. “This was partly due to a slightly older cohort of investors who were apparently looking to buy the dip,” the report said.
In Q4 2022, the proportion of retail investors aged 35-44 and 45-54 who held crypto increased by five percentage points each, to 53% and 36%, respectively.
The top reason cited for investing in crypto was the opportunity to earn high returns (37%), while 34% said they believe in the power of blockchain and believe crypto is a transformative asset class.
A majority of respondents (61%) continue to avoid investing in the cryptocurrency sector, with 50% citing the perceived risk of the asset class. By comparison, 30% cited the lack of strong regulation as a reason for not investing.
“From what we can see, many retail investors are taking a ‘wait and see’ stance when it comes to technology and crypto,” said Ben Laidler, global market strategist at eToro.
While the proportion of respondents who avoid crypto remains in the majority, the data indicates that this fact is slowly changing, thanks in particular to an increase in enterprise adoption. According to a recent investigation conducted by Casper Labs, of the 603 companies that participated, 90% indicated that they had already deployed blockchain to some extent.
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