Enthusiasm For Crypto Continues Among Young UK Adults Despite Downturn

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Young adults in the UK remain hungry for cryptocurrency despite the downturn in the market and the ‘crypto winter’.

A survey of 1,002 people aged between 18 and 30 revealed that nearly half were more positive towards cryptocurrency investing than in November 2021 – when Bitcoin reached its all-time-high of $68,000.

Despite a slump in the crypto market in parallel with stock markets across the world driven by a series of macroeconomic factors, including the war in Ukraine, enthusiasm for crypto remains.

The survey, conducted by Opinium Research on behalf of asset manager WisdomTree, also found that the number of young adults invested in crypto is nearly the same as Stocks and Shares ISAs – with 27% and 28% respectively.

Jason Guthrie, Head of Digital Assets, WisdomTree, said: “Despite a high level of familiarity of cryptocurrencies, seeking out high quality information remains a priority amongst young adults, and rightly so.

“We are still early on the crypto asset adoption curve, and to get further along more education is needed. We know sentiment towards cryptocurrencies amongst young adults is positive.

“Many events have unfolded across crypto and financial markets in 2022. This is encouraging them to seek out more information to educate themselves.

“Cryptocurrencies are maturing into a traditional asset class and, as with any other asset class, it is essential that you do your research, know what you’re investing in and have a long-term investment horizon.”

Other key findings were:

• Crypto familiarity is increasing, with nearly nine in ten of those surveyed being somewhat familiar and one in five saying they were very familiar with crypto.
• Some 70% of respondents said they were familiar with non-fungible tokens (NFTs).
• Only 11% said they cared about endorsements from high profile figures when it came to making crypto investment decisions.
• Some 56% said they are likely to invest in cryptocurrencies in the future.

More trusted crypto information needed

Despite the broadly positive findings, some 48% of respondents admitted they didn’t fully understand how crypto works, and 58% said there wasn’t enough information about cryptocurrency available from trusted sources.

This point is particularly relevant to mainstream financial institutions such as WisdomTree, as 27% of respondents said they would be more likely to invest in crypto through more established financial services providers.

The Government and regulators are also key to adoption as well, with 56% of young adults saying they would be more confident investing in crypto if there was greater support for the asset class from these bodies.

Adria Beso, Head of Platforms Distribution, Europe, WisdomTree, added: “Young adults are increasingly treating crypto like a mature asset class.

“They don’t care about celebrity endorsements and the promise of unsustainable returns.

“Instead, they want to understand how they work and see more support from government and regulators.

“This year has seen a number of major public policy shifts for digital assets in the United States, UK, and EU.

“The announcements are positive signs that digital assets are being integrated into existing regulatory and legislative frameworks in different parts of the world.”