Cryptocurrency Ownership Declines as Investors Seek Less Risky Options

Cryptocurrency ownership has declined significantly over the past year, according to a new Gallup survey. The share of all U.S. adults who own crypto fell from 14% in the previous year's poll to 9%, while among investors, defined as those with $10,000 or more in investable assets, it dropped from 17% to 11%. Two-thirds of these investors say they're not interested in buying crypto, up just a few percentage points from last year.

Young men, aged 18-49, are the most likely to own crypto. However, even among this subgroup, ownership has fallen from 33% to 24% over the past year. Professor Jay Zagorsky notes that the decline in ownership can be attributed to a crypto price drop, which has sent 'tenuous investors looking someplace else to make their fortune.'

Stephen Kates, a certified financial planner and principal at Clocktower Financial Consulting, suggests that crypto's 'honeymoon period' has faded. He expects Bitcoin and Ethereum to remain popular yet volatile assets, but notes that the rise of alternative investment options, such as sports betting and prediction markets, has expanded the number of outlets for speculative opportunities.