Crypto Continues to Grow, 65% HODL Long-term, Says Gemini Report

Despite recent turbulence in the market, crypto adoption has remained stable in the US and the UK, according to Gemini’s ‘2024 Global State of Crypto’ report. 

Gemini, the American crypto exchange and custodian bank for digital assets, based its report on a survey conducted between May and June with 6,000 participants from the US, UK, France, Singapore, and Turkey. 

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The survey found interesting trends in the retail side of the crypto market.

Long-Term Investment and Growth Opportunities

Adoption rates in the US and UK have held steady at 21% and 18% since 2022—even after the dramatic market downturn in 2022 when the total market cap of the top 100 cryptos dropped from US$2.7T (AU$4.05T) to roughly $800B (AU$1.2T).

Moving on, France saw a slight increase in ownership, rising to 18% from 16%, while Singapore experienced a decline from 30% to 26%. Turkey, the report says, is “overwhelmingly positive toward crypto”, with over 58% reporting owning crypto.

Additionally, the report shows that over 65% of current crypto owners view digital assets as a long-term investment, and 38% use it as a hedge against inflation.

Adoption Hurdles

Nevertheless, the industry still struggles with a particular issue hindering adoption: regulation. In both the US and the UK, 38% of non-crypto owners cited lack of regulatory clarity as their reason for staying out of the market, a sentiment shared by 32% in France and nearly half in Singapore.

The introduction of spot exchange-traded funds (ETFs) has positively impacted the US market, with 37% of holders using ETFs to invest in digital assets. Most crypto holders expressed plans to allocate 5% or more of their portfolio to digital assets.

The report also notes that the gender gap has widened slightly since 2022, with 69% of crypto holders identifying as male and 31% as female. Furthermore, 73% of US crypto holders stated they plan to consider a candidate’s stance on digital assets when voting in the upcoming November presidential election.

Political Influence

The report also highlighted how crypto has become a “significant campaign issue” in a presidential election. Three in four crypto owners said a candidate’s stance on crypto will influence their vote for the next president.

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“More than a third (37%) say that a presidential candidateʼs position on crypto would have a significant impact on their vote for president,” reads the report.