Despite market beat down, investors still plan to buy more crypto assets
March 5, 2019 | Blog

Despite market beat down, investors still plan to buy more crypto assets

When market prices drastically fall, investors will typically respond in two ways. The first group will join the stampede and exit. The second (usually smaller) group senses a bargain and buys even more, confident that the market will ultimately rebound.

Crypto investors seem to be falling into that second group, at least according to the third SharesPost Cryptocurrency and Blockchain Consumer and Investor Survey.

The crypto markets, particularly Bitcoin, has struggled through a rough wave of volatility of late. But investors tell us that they think prices will recover this year. And they are willing to back up that opinion with action.

Nearly 70 percent of investors say they are more likely to increase their crypto holdings, compared to just 15 percent who said they are not, the survey said. Furthermore, 25 percent of investors (a plurality) said they expect the asset class to jump 50 percent or more.

So why are investors so incredibily bullish? Two things come to mind: Crypto markets are still very new, which means we’re likely to see a lot of price volatility. And investors think prices may have already bottomed out.

Moreover, investors think regulators will finally offer some positive, market clarity. Nearly 45 percent (a plurality) say they expect favorable regulation this year, compared to 35 percent who expect no change and just under 20 percent who expect unfavorable regulation towards crypto.

Here are some other highlights from the survey:

Bitcoin, Ethereum and XRP remain the most popular crypto holdings Both investors and consumers overwhelmingly picked Bitcoin as the top currency they own, followed by Ethereum, XRP and Stellar. Positive investor sentiment for Bitcoin grew to over 80 percent. XRP remains investors’ preferred choice over Litecoin and Bitcoin Cash.

In a SharesPost Research first, respondents share crypto holdings More than 30 percent of investors said they owned at least $25,000 in Bitcoin while another 20 percent reported a similar amount with Ethereum.

The number of companies implementing Blockchain holds steady despite negative sentiment 39 percent of investors and 46 percent of consumers expect their employers will implement blockchain technologies sometime in the future.

2025 is the target for most investors and consumers Investors and consumers see 2025 as the year we see widespread adoption of cryptocurrencies and Blockchain technology.

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This article does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Securities referenced in this article may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2020. All rights reserved.

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

This article does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Securities referenced in this article may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2020. All rights reserved.