Key Points
- Despite the 2022 market downturn, crypto ownership remained steady in major markets, with the US at 21% and UK at 18%, while Singapore saw a slight decline from 30% to 26%. This stability reflects strong long-term investor conviction.
- Spot Bitcoin ETFs have created a new gateway to crypto investing, with 37% of US crypto owners now holding some crypto through ETFs, including 13% who entered the market exclusively through ETFs.
Market Resilience and Long-term Investment Focus
The cryptocurrency market has demonstrated remarkable resilience according to Gemini’s 2024 Global State of Crypto Report, with nearly two-thirds of crypto owners (65%) maintaining a long-term investment strategy. The report, which surveyed 6,000 adults across five countries, reveals that despite the dramatic market downturn in late 2022 that saw the top 100 cryptocurrencies’ value plummet to $830 billion from $2.7 trillion, ownership rates have remained notably stable in key markets.
ETFs Drive New Market Growth
The introduction of spot Bitcoin ETFs in January 2024 has emerged as a significant catalyst for market growth, particularly in the United States. The report highlights that 37% of US cryptocurrency owners now hold some portion of their crypto assets through ETFs, with more than one in ten (13%) being new market entrants who exclusively own crypto through these investment vehicles. This trend suggests that traditional financial products are creating new pathways for crypto adoption.
Regulatory Clarity Remains a Key Concern
Despite growing institutional acceptance, regulatory uncertainty continues to pose a significant barrier to crypto adoption. The report indicates that nearly half (49%) of non-owners in Singapore cite regulatory concerns as a barrier to entry, while similar sentiments are shared by 38% of non-owners in both the US and UK. This highlights the ongoing need for clearer regulatory frameworks to foster broader market participation.
Political Implications and Future Outlook
For the first time in US history, cryptocurrency has emerged as a significant campaign issue, with 73% of crypto owners indicating that a candidate’s crypto policies will influence their presidential vote. Looking ahead, the market appears poised for potential growth, with more than 70% of past crypto owners expressing likelihood to return to the market within the next year, signaling strong underlying confidence in the sector’s long-term prospects.
