2.3 Million UK Adults Now Hold Crypto Assets, 10.5% More than Last Year: FCA Report
The UK's financial regulator reported a positive attitude towards crypto, with 38% of investors considering their stake in them as a gamble, versus 47% last year. Also, compared to 15% last year, only 11% regretted buying cryptos.
The Financial Conduct Authority (FCA) has released a detailed report on cryptocurrency, noting that more and more people are now investing in cryptocurrencies.
According to the financial regulatory body, an estimated 2.3 million adults (4.4%) in the UK now hold crypto assets, up from 1.9 million last year. Bitcoin is the most common asset at 66%, followed by Ethereum (35%), Litecoin (21%), XRP (18%), and Bitcoin Cash (15%).
In total, an impressive 78% of adults have now heard of crypto assets – up from 73% last year.
“Today’s crypto asset report from the FCA paints an interesting picture of developments in the crypto asset market in the UK in the last year,” said eToro’s Dan Moczulski. “These numbers show it has gone truly mainstream in the UK.”
More than half of those who are already invested were considering buying, even more, the research found. Also, fewer people regretted buying cryptos, down from 15% to 11%.
FCA’s research further notes that attitude towards crypto is changing, with 38% of investors currently considering their stake in crypto assets as a gamble, down from 47% last year.
Moreover, it found that about 14% of crypto buyers surveyed said they borrowed to invest.
The regulator is now issuing a warning that these investments are not regulated and, “If consumers invest in these types of products, they should be prepared to lose all their money.”
One in 10 who had heard of crypto actually said they are aware of consumers warning on the FCA website. While most consumers recognize that crypto investments are not protected, 12% of crypto users believe otherwise. The report noted,
“The 2021 research follows heightened public interest and media coverage, alongside continued growth of the cryptocurrency market, including high cryptocurrency prices. It also comes after more widespread involvement of financial services firms in the market, and significant institutional investment. With these trends in mind, it is unsurprising that our research shows that both ownership and awareness have risen.”
Bitcoin is currently trading around $39k, down 40% from its all-time high in April. The total cryptocurrency market is around $1.65 trillion, down just under $1 trillion from its peak of $2.55 trillion last month.
While the crypto market expects the space to mature with the entry of institutional investors and experience shallower and shorter bear markets, billionaire investor Mark Cuban recently called for bigger downsides, comparing the current market dynamics to the internet boom.
“We always talk about the crypto winters or these big declines in pricing. We ain’t seen nothing yet,” said Cuban.
“In every category, there was a ton of competition, but it really was a zero-sum game. Maybe one big winner, and a couple of follow-up number twos, and then the other 90% going out of business.”