Despite market slowdown, US sees 44% increase in retail crypto investors
The crypto winter has not dampened the interest and confidence of Americans in the cryptocurrency sector, according to a Crypto Pulse survey of 28,000 institutional and retail investors in 23 countries.
The research was an initiative from the London-headquartered crypto exchange Bitstamp.
In the US, 61% of retail respondents said they invested in crypto in Q2 2022. That’s an increase of 44% from just 42% who invested in crypto in Q1, according to the survey. Confidence in cryptocurrencies in the country also increased from 61% in Q1 2022 to 73% in Q2.
Canada, on the other hand, saw a drop in confidence in crypto below 50% in Q2, according to the survey. In South America, trust in cryptocurrencies remained high – 77% in Brazil, 69% in Chile and 70% in Mexico.
But despite the increase in retail investors jumping into crypto and the high level of confidence, respondents from the US as well as Canada feel the need for more crypto and blockchain education. According to the survey, 44% of retail respondents across the US and Canada said they don’t know enough to start investing in crypto.
Institutional interest in crypto also remains high despite the downturn in the crypto market. In the US, 69% of surveyed institutions recommend crypto to their clients, while in Mexico the number is 78%. In Brazil and Argentina, respectively, 72% and 71% of institutions recommend crypto, according to the survey.
Globally, however, confidence in cryptocurrencies has eroded somewhat among both institutional and private investors. The share of retail investors who find cryptocurrencies trustworthy fell from 67% in Q1 to 65% in Q2, while the share among institutions fell from 70% to 67% in Q2.
Nonetheless, the number of retail respondents investing in crypto or trading on a daily or weekly basis globally went from 56% in Q1 to 60% in Q2. In addition, one in four institutions plan to make crypto their primary source of investment, according to the survey.
Europe
Across Europe, the survey showed that the share of retail investors who trust cryptocurrency fell from 54% in Q1 to 52% in Q2 2022. As in the US and Canada, Europeans also feel the need for more crypto education. 21% of Europeans not currently investing in crypto said they don’t know enough to start.
There was a 7-point increase in the number of retail investors investing in crypto compared to Q1, the survey showed.
With an increase in crypto fraud and the collapse of major crypto lenders, the number of retail investors calling for more regulation has increased from 23% to 26% in Q2. On the contrary, institutional investors feel that crypto regulation is gaining momentum with only 23% saying there is a lack of regulation, compared to 31% in Q1.
In addition, 31% of institutional respondents said they want to increase their investments in crypto in Q1, compared to 28% in Q1.
