September 25, 2022

According to a new study, Retail investors find more traditional financial products like stocks and bonds to be more blunt than cryptocurrencies.

While 29% of investors said they did not understand cryptocurrencies, nearly 40% said the same about stocks and bonds, according to a World Economic Forum (WEF) survey. The privately funded survey, conducted in partnership with BNY Mellon and Accenture, included more than 9,000 people in nine countries.

It revealed a growing generation gap, as 70% of private investors are now under 45. Although the majority said they were trying to build long-term wealth, another 40% of respondents had yet to invest because they didn’t know how to invest or found it too confusing.

“With the global adoption and trading volume of cryptocurrencies increasing significantly in recent years, there has been a lot of buzz about it, which is likely affecting investor awareness of the products.” he said WEF Chief Investment Officer Meagan Andrews.” Less coverage of more traditional products such as stocks and bonds can also backfire on awareness.

It was the return of retail investors that caused cryptocurrency-related stocks to see inflows of nearly $1 billion recently, according to a report by VandaTrack. Last month, Marathon Digital Holdings, Coinbase Global and Riot Blockchain were among the most bought assets that Fidelity reported trading on its platform.

The NYSE FactSet Global Blockchain Technologies Index was on track for its biggest monthly gain since February 2021, while the Bloomberg Galaxy Crypto Index, which tracks the biggest digital assets including Bitcoin, had risen about 35% since beginning of the year. Meanwhile, half of the top 20 exchange-traded funds (ETFs) since the end of June were crypto-related. “Retailers are definitely showing up here,” said Ed Moya, senior market analyst at Oanda Corp.

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