Study: Share of Australian HODLers back to 2021 levels

The study identified cryptocurrencies as the sixth most popular investment choice for Australians.

The latest ASX Australian Investor Study estimates that around 15% of Australians have some of their wealth invested in cryptocurrencies. This figure is somewhat similar to the 17% during the 2021 bull market.

The research further shows that younger Australians are more inclined to the industry, with 31% of them being HODLers.

The latest trends in the "Underworld"

According to the analysis, roughly one in seven Australians has entered the cryptocurrency market, with men (69%) making up a greater proportion of investors. Most people spend between $340 and $3,400 on digital currencies, while only 10% have invested more than $67,000.

A closer look at the different demographic groups reveals that young people are significantly more interested in the market than older generations. 31% of so-called "next generation investors," or investors with an average age of 21, have bought bitcoin or altcoins.

The firm that conducted the study believes that younger people are “more risk-averse than older people,” which is why they are more likely to tolerate the volatility of cryptocurrencies and enter their ecosystems.

“Most people understand the cyclical nature of investing, with 29% saying their portfolio balance fell by 20% as a risk they understood could happen, and another 36% saying they would be concerned but would wait if it happened We will see if the situation improves," the ASX said.

It added that the "next generation of investors" were excited about new technologies and sometimes wanted to be involved in things their parents would have avoided.

High Value Investors (HVI) also find the sector attractive. 33% own digital currency, and their median investment is nearly $88,000.

The overall number could rise in the next study if "prospective investors" (approximately 1.33 million people) decide to jump on the bandwagon. This section represents people who have not yet made any investments but are considering investing within the next 12 months. 29% admitted they would choose cryptocurrency over all other options.

Investing in shares and real estate remains the most popular choice for Australians. Fixed deposits, ETFs, and international stocks round out the top five, while cryptocurrencies come in sixth.

Australians' top investments, source: ASX

Last Year's Figures

Ongoing uncertainty in the crypto market appears to have contributed to a significant investor exodus of Australians since November 2022, when Independent Research estimated that more than 25% of locals are HODLers.

Similar to the ASX, last year's analysis determined that younger people are more likely to buy digital assets. By comparison, only 10 percent of those over 65 did.

Crypto awareness is at a high level, with almost 90% of the population aware that Bitcoin exists. Nearly 43% are familiar with Ethereum (ETH), while Tether (USDT), Dogecoin (DOGE), Ripple (XRP), Solana (SOL) and Cardano (ADA) are also popular.