Report reveals growing interest in crypto among Australians

New research from consumer site Finder and cryptocurrency exchange Coinbase has revealed a notable shift in the financial habits of Australians, with more than a quarter (27%) of the population indicating they have owned or are interested in owning cryptocurrency in the last 12 months. This figure equates to approximately 5.6 million people, reflecting a growing curiosity and engagement with digital assets among Australians.

The Consumer Cryptocurrency Report 2024, which surveyed over 3,000 Australians, offers a comprehensive look into the nation's attitudes and behaviours towards traditional finance and cryptocurrency. The survey sample is nationally representative in age, gender, location, and income, making it one of the largest and most statistically significant explorations of the topic in the Australian context.

According to the report, younger generations—specifically millennials and Gen Z—are leading the charge in crypto adoption, driven by a familiarity with digital technologies. High-net-worth individuals and professionals in the technology and finance sectors also show significant interest in cryptocurrency. The high average crypto portfolio, valued at AUD $21,426, indicates that those engaged in crypto trading tend to be sophisticated investors.

Despite this burgeoning interest, Australia lags behind its global counterparts in terms of actual crypto ownership. Only 9% of Australians have held crypto in the last 12 months, compared to a global average of 11%. Many cite a lack of understanding and confidence as critical barriers. Indeed, a significant proportion of the population finds crypto too complex or is unsettled by the macroeconomic environment and associated cost of living pressures. This sentiment is echoed by 35% of crypto owners and 34% of non-crypto owners who feel they do not have enough funds to invest. Additionally, 30% of current crypto owners and 31% of potential investors are wary of market volatility.

John O’Loghlen, Regional Managing Director APAC at Coinbase, emphasized the need for regulatory certainty and trust to foster more informed investment decisions. “Australia is a crypto-curious country with the majority of Australians believing that crypto has an important role to play in the economy. However, many Australians still feel like they don’t understand crypto well enough to invest in it or lack the confidence to do so against the current economic backdrop. The data shows that Australians need regulatory certainty, trust, and security to make more informed decisions and take their first steps towards owning crypto,” he said.

The findings also highlight that wealth creation and portfolio diversification are primary motivators for crypto ownership. Over half of the crypto investors trade at least once a month, with a notable 13% engaging in weekly or more frequent trading. A significant portion of crypto owners also hold traditional investments, including shares, suggesting a strategy of diversified asset management. About 76% of those owning crypto also have investments in shares, and 32% of those who own shares have also ventured into cryptocurrency.

Looking forward, there is a shared optimism about the future of crypto among Australians. Over a third (38%) of both crypto owners and non-owners feel positive about the outlook for cryptocurrency over the next year. Notably, 48% of respondents believe that cryptocurrency has a positive societal impact, while 56% view it as the future of finance.

Security and regulatory clarity remain top concerns. Half of the respondents rate security and exchange reputation as crucial considerations when dealing with cryptocurrencies. About 43% are in favour of government regulation, though 39% believe the government is slow to implement necessary regulations in a rapidly evolving sector. Looking globally, examples from the EU, the UK, Singapore, UAE, and Bermuda provide more defined regulatory frameworks for cryptocurrency operations, which could serve as models for Australia.

Graham Cooke, Head of Consumer Research at Finder, underscored the importance of these findings. “Whether you're a detractor or a HODLer, the research is clear that the crypto space in Australia is filled with highly engaged participants. For many of those with skin in the game, crypto has evolved from a speculative investment to an important tool for wealth creation and diversification,” he stated.