A Grayscale survey revealed that Bitcoin interest and knowledge among investors has been steadily growing this year, driven by the coronavirus pandemic.
Grayscale, which is currently one of the largest institutional Bitcoin (BTC) whales in the world with more than 500,000 BTC guaranteed in its reserves, released its annual survey on the digital asset. According to the report, investors attributed the increased interest in Bitcoin investments to the pandemic, with many respondents saying that Bitcoin “shares some (similar) attributes with value reserve investments”. By JPMorgan analysts cited in the search:
“When asked whether the pandemic made Bitcoin more or less attractive to them, three times as many investors indicated that COVID-19 had increased interest in Bitcoin. “
Among the respondents, investors who classified Bitcoin as a safe haven asset hovered around the ages of 35 to 44 years.
Increasing the relevance of Bitcoin in America
According to the Grayscale survey, 62% of respondents in the United States now claim that they are very familiar with Bitcoin, compared to 52% in 2019. The motivating factors that drove Bitcoin’s interest include the potential growth of cryptocurrency in in the near future, the ability to invest in small amounts of Bitcoin and to increase investment over time.
The characteristics of an average Bitcoin investor in 2020 remain the same as before – investors looking for new investment opportunities usually “describe their risk tolerance as ‘aggressive’, maintain investment accounts at various companies and are up to date with financial news, more likely to invest in BTC. In addition, the higher an investor’s education level, the more likely he is to invest in Bitcoin.
In addition, with the growing interest in Bitcoin, the opportunity for financial advisors to present BTC investment products to clients through their daily work may be closer than imaginable. According to Grayscale’s analysis:
“6 out of 10 now believe that digital assets have a place in their portfolio.”
The US needs to establish crypto regulations quickly
Currently, according to the report, 32 states in the United States have already introduced and passed cryptocurrency legislation promoting Bitcoin. As awareness and integration of cryptocurrency become increasingly common, more states are sure to include clear Bitcoin regulations in their legislation. According to the survey, “63% of investors cited concerns about Bitcoin’s regulatory status”.
The lack of crypto regulation as a whole in the United States was previously addressed as a concern by Ripple (XRP) CEO Brad Garlinghouse, who claims that this is the main thing that impedes XRP operations in the US.
Wyoming paves the way
If states follow Wyoming’s example, cryptocurrency in the U.S. will be seen as more welcoming and this could lead to even more American crypto investors. Wyoming previously became the first state to grant a special purpose deposit license (SPDI) to a cryptocurrency exchange, namely Kraken.
After the approval of its statute, Kraken is now the first SPDI bank in the United States, located in the state of Wyoming. This implies that the crypto exchange, Kraken, can now hold digital assets in custody, approve payment transactions and operate payment systems; customers will also be able to easily switch between fiat currency and cryptocurrencies.