A recent study conducted by the U.S. Federal Reserve reveals that cryptocurrency ownership has not seen significant growth, despite a strong market rebound. The report, released by the Federal Reserve Bank of Philadelphia’s Consumer Finance Institute (CFI), gathered data from surveys conducted between January 2022 and July 2024, using Bitcoin prices as a reference point to analyze ownership trends. The findings show that ownership rates declined during the 2022 crypto winter, with a drop from 24.6% in January 2022 to 15.4% in January 2024, despite market recovery over the following 18 months.
Even with Bitcoin’s price surge in March 2024 and its halving in April, ownership rates continued to decline, reaching 14.7% by July. However, the report notes an increase in the number of people considering purchasing cryptocurrencies in the future. Interest in future crypto investments hit a low during the 2022 bear market but surged as the market recovered, with 21.8% of respondents expressing a likelihood of buying crypto by April 2024, up from 10.6% during the downturn. The CFI’s research is based on responses from over 5,000 participants.
According to the latest annual household survey conducted by the Fed, the number of U.S. adults reporting crypto ownership or usage has seen a significant decline. The Survey of Household Economics and Decisionmaking (SHED) found that approximately 18 million US adults reported using cryptocurrencies in 2023, down from previous years. In the 12-month period leading up to October 2023, 7% of surveyed US adults reported using cryptocurrencies, a decrease from 10% in 2022 and 12% in 2021. These findings differ significantly from Coinbase’s claim that 52 million Americans own cryptocurrencies.
On the institutional front, nearly 40% of institutional investors had exposure to crypto assets in 2023, up from 31% in 2021, according to a survey conducted by KPMG. A third of respondents reported having at least 10% of their portfolio allocated to crypto assets, compared to only a fifth of respondents two years ago. The survey also explored the reasons behind institutional investors’ growing interest in cryptocurrencies, with 67% citing the maturing market and custody infrastructure as significant factors, a notable increase from the 14% recorded in 2021.
In conclusion, the Federal Reserve’s report on cryptocurrency ownership highlights the stagnant growth in ownership rates among U.S. consumers despite market rebounds and price surges. While the number of people considering future crypto investments has increased, actual ownership numbers continue to decline. On the institutional side, there has been a notable rise in exposure to crypto assets among institutional investors, driven by factors such as market maturity and custody infrastructure improvements. Overall, the dynamics of cryptocurrency ownership and investment are evolving, with both retail and institutional players navigating shifting market trends and sentiments.
