Coronavirus Has Been Good for Bitcoin: Grayscale Investor Study

Grayscale, the world’s largest crypto asset manager, today published a survey that shows America’s Bitcoin investors are more interested in Bitcoin than last year, in part spurred by the coronavirus pandemic. 

The survey, which summarizes the views of 1,000 American investors between the ages of 25 and 65, showed that the average Bitcoin investor is college-educated, male, and employed, and on the younger side. No surprises there (that said, the survey only counted those with household incomes above $50,000). 

Further, “Investors interested in Bitcoin are also more likely to be actively seeking new investment opportunities, describe their risk tolerance as “aggressive,” hold investment accounts with multiple firms, and avidly consume financial news,” found Grayscale. Again, all things that should shock absolutely no one.

But here’s the wrinkle: there's increasing interest in Bitcoin among these aggressive, male, gainfully employed risk-takers.

Grayscale conducted a similar survey last year. This year, 9% more respondents say that they are “familiar” with Bitcoin (62% compared to 53%), and that interest is on the up; in 2020, 55% of respondents showed an interest in Bitcoin, compared to 36% last year.

Of its respondents who had invested in Bitcoin, Grayscale found that 63% of Bitcoin investors said that the coronavirus pandemic impacted their decision to invest. 39% said that the pandemic made Bitcoin more appealing. 

“Bitcoin appears to be gaining steam as market participants seek investments that can act as safe havens within a portfolio,” said Grayscale. 

Grayscale is a large crypto asset management fund. It sells a financial product called the Grayscale Bitcoin Trust. In its trust is $6.1 billion worth of Bitcoin, and Grayscale is kindly selling public shares in the trust on US-based OTC desk OTCQX. The shares usually sell at a premium to Bitcoin. 

The survey showed that investors aged 35-44, whom Grayscale noted have “already navigated three recessions and has seen traditional defensive instruments, such as real estate, defensive stocks, and bonds, lose their appeal as hedges against market downturns,” considered that Bitcoin would be a safe haven. Fourth time’s a charm.

But it’s the younger generations who stand to provide the most value to the crypto economy, found the report. “The fact that the majority of current and potential Bitcoin investors haven’t even reached their prime earning years yet, coupled with the $68 trillion dollar wealth transfer set to take place over the next 25 years, reveals a potentially huge opportunity for those who see the possibility for long-term growth in Bitcoin.” 

Get ‘em while they’re young.