The crypto winter hasn’t stopped young French adults from investing in cryptocurrency, according to a study by WisdomTree

The awareness of cryptocurrencies is almost entirely within the age group surveyed.

Four in ten people in this age group say they have a more positive view of cryptocurrencies today than when Bitcoin peaked in November 2021.

Most young adults want access to reliable information about cryptocurrencies and would be more comfortable with more government support for this environment.

According to a study commissioned by WisdomTree, the issuer of exchange-traded index funds (ETFs) and publicly traded products, young French adults have continued to invest in cryptocurrencies despite the price drop seen since the beginning of the year (ETP). An Opinium survey of 1,002 French adults between the ages of 18 and 30 found that the percentage invested in cryptocurrencies was about the same as the percentage invested in equities and equity savings plans (PEA), at 22% and 23%, respectively. This suggests a strong evolution in their way of investing.

This research shows a growing adoption of cryptocurrencies. More than eight in ten respondents (84%) said they were at least somewhat familiar with these assets, and nearly one in five (18%) said they were very familiar. More than half of respondents (54%) consider themselves at least somewhat familiar with non-fungible tokens, or NFTs, which were launched in 2018 but only recently gained popularity.

“Despite the high level of knowledge about cryptocurrencies, getting quality information remains the priority for young adults, and rightly so,” pointed out Jason Guthrie, Head of Digital Assets at WisdomTree. “We are still at the beginning of the adoption curve and there is a need to train investors to continue this growth. We know that sentiment towards cryptocurrencies among young adults is positive. »

Interestingly, the survey shows that more than four in ten respondents (44%) have a more positive view of cryptocurrencies than when Bitcoin hit a record high of over $68,000 in November 2021. [1].

“Many highs took place in the financial and cryptocurrency markets in 2022”, continues Mr. Guthrie. “It drives them to seek more information to learn more. Cryptocurrencies are maturing and like all asset classes it is essential to do your own research, know what you are investing in and aim for a long term investment horizon. »

Need for reliable information to support the request

Young French adults are getting smarter when it comes to why investing in cryptocurrencies can be worthwhile. Respondents say they no longer consider celebrity support, and only 9% will still invest for this reason. Rather, they want to learn more about the fundamentals around cryptocurrencies (36%) and whether investing more can make sense when prices fall. Many respondents also expressed a desire to meet other people who invest in cryptocurrencies (33%).

When it comes to knowledge about cryptocurrencies, 45% of young adults said they don’t know how they work, but more than half (57%) said they are likely to invest in cryptocurrencies in the future. 62% also feel they don’t have enough access to enough information from trusted sources. It is therefore important that players in the world of traditional finance and those who provide access to cryptocurrencies provide quality and accessible information to meet this training demand. Finally, 31% of young adults say they would be more likely to invest if cryptocurrencies were more established in the financial sector. Nearly six in ten (56%) would feel more comfortable investing if the asset class had more support from government and regulators.

“Respondents increasingly view cryptocurrencies as a mature asset class”, said Adria Beso, European Platform Distribution Manager at WIsdomTree. “They are not interested in the endorsement of celebrities or the promise of exaggerated performances. They prefer to know how they work and expect more support from government and regulators. There have been major changes in government policy regarding digital assets in the United States, the United Kingdom and within the European Union this year. These announcements are positive signs of the integration of digital assets into the current regulatory and legislative frameworks in different regions of the world. »

“The digital asset ecosystem is maturing and its increasing regulation could help it reach even more people. While recent volatility can be an attractive entry point, it is essential that investors gain knowledge and understanding before investing. Companies providing access to cryptocurrencies have a duty to provide quality, understandable and accessible information to help investors make informed decisions. »

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