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A representation of the Bitcoin virtual currency can be seen in front of a stock chart in this illustration taken on March 15, 2021. REUTERS / Dado Ruvic / Illustration
LONDON, June 17 (Reuters) – More and more people see crypto assets as a traditional investment rather than a “bet” as the ownership of bitcoins and similar cryptocurrencies has risen to 2.3 million adults in Britain this year, the Financial Conduct Authority said Thursday.
Regulators have repeatedly cautioned consumers against the “speculative” nature of largely unregulated crypto assets, with bitcoin peaking at around $ 64,899 in April before a sharp drop left it trading at $ 39,344 Thursday morning.
But people are increasingly seeing crypto assets as a potential investment, even as the level of understanding of the industry declines, the FCA said in its fourth Crypto Asset Ownership Study.
The number of UK adults owning crypto assets has grown rapidly from 1.9 million in 2020, the FCA said, adding that the number of people who view them as a bet has fallen to 38% from 47% over the course of from the same period.
Average holding has dropped from 260 pounds to 300 pounds ($ 419.58), reflecting higher prices, while ownership remains biased towards professional men over 35, the FCA said.
Excitement is growing, with more than half of crypto holders saying they have had a positive experience so far and are likely to buy more, the FCA said.
Sheldon Mills, FCA’s executive director for consumers and competition, said it was important for consumers to understand that assets are largely unregulated.
“If consumers are investing in these types of products, they should be prepared to lose all of their money,” Mills said in a statement.
The latest survey also first looked at stablecoins like Facebook’s Diem. Stablecoins seek to avoid volatility by being tied to an asset such as a currency.
Ownership of stablecoins is much lower, with 87% of cryptocurrency users stating that none of the crypto currencies they bought were stablecoins.
($ 1 = 0.7150 lb)
Reporting by Huw Jones; Editing by Elaine Hardcastle
Our Standards: The Thomson Reuters Trust Principles.
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