Crypto ownership has significantly increased among retail investors since 2020, according to the Board of the International Organization of Securities Commissions (IOSCO), which called for more investor education about the space.
Fifteen out of 24 surveyed jurisdictions reported up to 10% or more of retail investors owned crypto last year, while six jurisdictions reported up to 30% or more crypto ownership, according to an Oct. 9 IOSCO report.
This is a steep increase from 2020, when half of the responding jurisdictions estimated that between 1% and 5% or less of investors owned crypto.
“Since 2020, the crypto-asset space has continued to evolve,” IOSCO wrote.
“Despite volatility in the market, which experienced a major downturn during the 2022 ‘crypto winter,’ retail investors, in both advanced economies and emerging market jurisdictions, continue to invest in the crypto-asset market,” it added.
Increase in crypto ownership by jurisdiction over the past four years. Source: IOSCO
IOSCO said there are still risks and concerns over crypto market volatility, lack of investor understanding, lack of regulations and scams and fraud.
It noted that these concerns were similar to those identified in the 2020 report.
The report also highlighted increased risks and challenges in the crypto market since 2020 and emphasized a need for more robust investor protection and education measures.
Over the past four years, there have been several high-profile failures and bankruptcies, a prolonged bear market with indexes plunging 73% from their previous highs, a surge in scams, hacks and investor losses, and increased regulatory and enforcement actions in the crypto space.
Despite this, retail investors remain keen on crypto assets, IOSCO said.
“Over the last four years, numerous surveys, studies, and reports have found increasing interest by investors, particularly new investors, in crypto-assets.”
Retail investors who have bought crypto tend to be younger — typically under 40 years old — and male, the report noted.
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In the United States, for example, nearly three in five investors under 35 years old considered a crypto investment, while over half had already invested.
About 44% of the Gen Z cohort in America — 18 to 25 years old — started by investing in crypto, the report said.
New investors are also more likely to invest in crypto than established investors, IOSCO noted.
IOSCO’s report cited the primary motivations for investing in crypto as fear of missing out (FOMO) or speculation, low cost of entry and advice from friends and social media.
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