Crypto Ownership Plummets as Investors Cool on Speculative Assets

Crypto ownership has declined over the past year, according to a Gallup survey. The share of U.S. adults who own cryptocurrency dropped from 14% to 9%, while investors with $10,000 or more in investable assets saw their ownership fall from 17% to 11%. A majority of these investors, two-thirds, say they are not interested in buying crypto.

The share of investors intrigued by crypto or planning to buy has remained flat at around 20%, but this is still a relatively low number. Young men aged 18-49 are the most likely to own crypto, with ownership falling from 33% to 24% over the past year.

Stephen Kates, a certified financial planner and principal at Clocktower Financial Consulting, attributes the decline in crypto ownership to the loss of its 'honeymoon period' in the early 2020s. He notes that the years since have not been as kind to the broader cryptocurrency ecosystem as they have been to Bitcoin specifically.

Kates expects Bitcoin and Ethereum to remain mildly popular yet volatile assets, but believes crypto is no longer seen as the 'it' investment. The end of cheap money has made it harder for cryptocurrencies to compete with less risky assets for investor capital, he adds.