New Bakkt Research Reveals Sustained Interest in Crypto as Consumers Seek Regulatory Clarity

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Fintechs are an attractive entry point for Crypto Curious and the next wave of adopters

ALPHARETTA, Ga., June 21, 2023–(BUSINESS WIRE)–Bakkt Holdings Inc (NYSE: BKKT) (“Bakkt”) has released the results of its “Semi-Annual U.S. Consumer Crypto Sentiment Survey” to over 2,000 US consumers who own crypto or are interested in crypto, examining their sentiments, adoption, and usage, as well as their concerns about crypto regulation and consumer protection. Despite recent turmoil in the crypto market, overall buy considerations remain stable for crypto owners at 84%. Interest among Crypto Curious fell to 27%, down 11 percentage points from Wave 1, which launched in October 2022. Overall, nearly half (48%) of participants respondents say their interest in buying crypto has not changed, and 30% report an increase in interest.

With FTX’s collapse in the rearview mirror, wave 2 data shows that crypto news and events are not a priority for respondents, with economic and financial events such as the inflationary environment and recent banking collapses recording higher unaided recall.

Both groups continue to agree that crypto is growing in popularity (78%) and will be more regulated in the future (78%), with only single-digit declines from wave 1. More than half (58% ) also continue to believe that crypto is the next big thing in modern finance.

“This study is a testament to the continued interest in crypto and the role of regulatory clarity in catalyzing further adoption,” said Bakkt CEO Gavin Michael. “Consumer security concerns underscore the importance of working with a secure crypto company that prioritizes a regulatory and compliant approach.”

Regulation will stimulate future interest

Among those who reported a decrease in interest in crypto over the past 6 months, regulation was noted as the most important driver of rekindling interest. Among the Crypto Curious, the increase in regulation jumped 20 percentage points from wave 1, highlighting the growing importance of consumer protection over gains. Although crypto owners still believe that the increase in the value of cryptocurrencies themselves will be the main event that rekindles their interest (69%), the increase in crypto regulations has also increased for them. , jumping 10 percentage points. Security and regulation around buying crypto remains a top concern for both (Crypto Owners 60%, Crypto Curious 77%). Additionally, half of crypto owners say they rate crypto providers differently after the crypto failures of the past few years. 45% say they now review a company’s risk management practices when reviewing suppliers.

The story continues

Fintechs as a ramp to the future

Where crypto owners acquired their crypto plays a key role in their concern about security and regulation. Those who buy crypto primarily through a fintech provider reported significantly lower security and regulatory issues (54%) than those who buy primarily through traditional crypto exchanges (66%). When it comes to trust, traditional exchanges are most disadvantaged with Crypto Curious, while fintech channels are much more trusted.

While owners who buy on crypto exchanges primarily view crypto as a long-term asset and believe in its potential due to blockchain technology, fintech crypto buyers view crypto as a way to diversify their investments, which suggests that they consider it more in the context of their overall financial life.

Among all respondents, using crypto as a way to send money or make payments is the weakest purchase motivation.

Trust Fuels the Next Phase of Crypto Adoption

Although the study found that trust is a growing hurdle for new market entrants, the data also suggests that trust can be built through existing customer relationships, as the channels Crypto Curious already uses are seen as the more reliable. This includes purchases from their financial advisor (70%), their main bank or credit union (77%), a loyalty rewards system from favorite brands (49%), or a trusted fintech ( 46%), such as a personal finance or investing app. platform. Traditional exchanges are most disadvantaged with Crypto Curious, with the fintech channel being significantly more trusted than traditional exchanges (46% vs. 36%).

About the study:

Commissioned by Bakkt and conducted through the information automation platform quantilope, the Wave 2 study surveyed more than 2,000 consumers across the United States and was conducted in April 2023, providing insight into how individuals have started exploring and investing in cryptocurrency in the past six months, as well as those planning to do so within the next six months. The Wave 1 survey surveyed over 2,000 consumers across the United States and was conducted in October 2022 to add additional context to how sentiment on crypto changed following the collapse of FTX.

To learn more about this research, please click here.

About Bakkt:

Founded in 2018, Bakkt develops technology that connects commerce. Our vision is to connect the digital economy by providing a platform for cryptocurrency, loyalty and commerce. We enable our partners and customers to deliver new opportunities to their customers through SaaS and API solutions that unlock crypto and drive loyalty, driving engagement and performance. Bakkt is headquartered in Alpharetta, Georgia. For more information visit: https://www.bakkt.com/ | Twitter @Bakkt | LinkedIn https://www.linkedin.com/company/bakkt/.

This does not constitute, and should not be construed as, investment advice or a recommendation to buy, sell or otherwise transact in any investment, including any of the products mentioned herein, or an invitation, offer or solicitation to engage in any investment activity. This information is provided solely on the basis that you will make your own investment decisions, and Bakkt does not take into account the investment objectives, special needs or financial situation of any investor. It is strongly recommended that you consult a professional investment adviser before making any investment decision.

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See the source version on businesswire.com: https://www.businesswire.com/news/home/20230620901456/en/

contacts

Lauren Post, Vice President of [email protected]

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