Wealthy Investors Bullish on Crypto Despite February’s Market Volatility

A recent CoinShares survey of 2,230 wealthy investors with at least $500,000 in investable assets revealed a growing appetite for crypto following February’s market correction. The survey, conducted across seven markets, showed that Germany had the strongest response, with 54% of investors becoming more likely to invest in crypto despite the downturn, compared to 23% who became less interested.

However, the actual market flows told a different story. U.S. spot Bitcoin ETFs experienced significant volatility, losing about $207 million during February. The month saw several sessions with hundreds of millions of dollars in withdrawals before flows reversed toward the end of the month. By the final four sessions, nearly $1 billion returned to spot Bitcoin ETFs, highlighting the delicate balance between investor confidence and market stress.

The survey also indicated a shift in how affluent investors view crypto risk. Only 6% identified primarily as short-term traders, while 41% cited strategic motivations like diversification and long-term appreciation. Economic factors such as interest rates and inflation were cited by 47% as investment triggers, reflecting a more conventional asset allocation framework.

Age was a significant factor in the survey results. Investors aged 18 to 44 allocated more of their portfolios to digital assets and were more likely to plan further increases. In the U.S., the proportion of respondents ranking crypto first for expected long-term performance increased by 13 percentage points to 40% year-over-year.

The preference for regulated access to crypto was another key finding. CoinShares found that 55% of respondents preferred intermediated crypto access, such as brokerage platforms and ETFs, with nearly four in five supporting greater regulation of digital asset markets.