The bulk of accredited investors are considering buying cryptocurrencies in 2021, according to digital asset disclosure and transparency platform Xangle.
In a new report, Xangle surveys 379 authorized investors in the US and finds that 74% of them plan on investing in Bitcoin in the next 12 months, 70% have already invested in the flagship cryptocurrency, and 79% of investors told Xangle that they are looking at Bitcoin as both a long-term and short-term store of value that will generate high returns.
Accredited investors are defined by the U.S. Securities and Exchange Commission (SEC) as individuals with $200,000 in annual income or $300,000 in joint income for the last two years and the expectation that they will match that in the current year.
Of those surveyed by Xangle, the majority plan on investing more than $500,000 into Bitcoin.
“While our respondents had a variety of preferred investment amounts, most (28.7%) agreed that $500,000 or more was a good amount. If we know that the majority of our respondents have $1 million or more invested in their portfolios, this means that many of our respondents wanting to invest in Bitcoin are willing to make it half of their portfolio.”
For those who are considering investing but haven’t done so yet, most of them are waiting for Bitcoin’s volatility to decrease and the price to stabilize.
“For those who would consider investing, we wanted to know what would need to change for them to invest. The majority (25.8%) cited that the price of Bitcoin would need to stabilize since price volatility was the single biggest factor keeping them away.
In other words, they want Bitcoin to settle as more of an institutionalized asset first. For 22.6% of them, the right opportunity for investing would need to present itself, which, according to the respondents, has not yet happened. For some, they’re waiting for the market to mature, and believe Bitcoin to be too new (19.4%).”
Another issue that may be holding a fraction of investors back from investing in crypto is the lack of clear regulation surrounding the sector. According to the report, 19.4% of accredited investors want regulators to do a better job of protecting investors before they get into the crypto market, and about 6.5% of the investors stated that “they didn’t yet know enough to feel comfortable investing.”
Xangle’s research shows that 90% of accredited investors are even looking beyond Bitcoin and into the decentralized finance (DeFi) sector.
“Not only are accredited investors capitalizing on Bitcoin and other cryptocurrencies, but they want to expand their portfolio to include DeFi products, too.”
You can read the full report here.
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