According to a new study, Retail investors are finding traditional financial products like stocks and bonds more sluggish than cryptocurrencies.
According to a survey by the World Economic Forum (WEF), while 29% of investors said they did not understand cryptocurrencies, nearly 40% held the same view of stocks and bonds. The privately funded survey, conducted in partnership with Bank of New York Mellon and Accenture, included more than 9,000 people from nine countries.
It reveals a widening generation gap, as 70% of retail investors are currently under the age of 45. While the majority said they were looking to build long-term wealth, another 40% of respondents had yet to invest because they didn’t know how to invest or felt it was too confusing.
“As global adoption and trading volume of cryptocurrencies have surged over the past few years, there has been a lot of talk about it, which may affect investor awareness of the product,” Say Meagan Andrews, head of investments at WEF. “More traditional products such as stocks and bonds are underreported and may also have the opposite effect on perception.”
According to a report by VandaTrack, it was the return of retail investors that led to the recent inflow of nearly $1 billion in cryptocurrency-related stocks. Last month, Marathon Digital Holdings, Coinbase Global and Riot Blockchain were among the most purchased assets Fidelity reported traded on its platform.
The NYSE FactSet Global Blockchain Technology Index is on track for its biggest monthly gain since February 2021, while the Bloomberg Galaxy Crypto Index, which tracks the largest digital assets including bitcoin, is up about 35% since the start of the year. Meanwhile, half of the 20 best-performing U.S. exchange-traded funds (ETFs) since the end of June are cryptocurrency-related. “Retail traders are definitely going to be here,” said Ed Moya, senior market analyst at Oanda Corp.
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