Survey: Americans prefer investing in cryptocurrencies than ETFs

Survey: Americans prefer investing in cryptocurrencies than ETFs
Updated: 19 Sep, 2021
3 mins read

A new survey has shed light on the shifting investment product preference among United States citizens.

The poll by media outlet CNBC revealed that 11% of Americans have invested in cryptocurrencies. The figure highlights the shift from traditional finance investment products like exchange-traded funds that recorded a share of 10%.

The study was published on August 23 and indicates that stocks at 31% are the top investment product, followed by mutual funds at 25%, while 12% of Americans own bonds. The survey was conducted between Aug 04 to 11, 2021, sampling feedback from 5,530 adults.

Notably, the investment in cryptocurrencies and ETFs come when the two products have grown in popularity. From the second half of last year, the cryptocurrency sector began recording a surge in value, with more institutional investors pumping capital into the industry.

Drivers for crypto investments

Consequently, most cryptocurrencies led by Bitcoin surged in value to hit a record price of $64,500 in April this year, with the market capitalization surpassing $1 trillion at some point. CNBC notes that most people venture into the sector over the opportunity to make more money. 

According to the survey, crypto investors are motivated by factors like ease of trading, it’s exciting to invest, and there’s potential for high growth in a short period of time.

Motivation for crypto investment. Source: CNBC via SurveyMonkey.com

Worth mentioning is that there is a likelihood that one investor puts their money in multiple products. With cryptocurrencies like Bitcoin advancing towards mainstream adoption, the asset has become an essential portfolio diversifier. 

At the same time, ETF investment has grown over the past year, attracting investors due to transparency and ease of investment. Similarly, during the first six months of 2021, ETFs recorded a significant inflow of capital. 

Our previous research indicated that globally, investors pumped $639.8 billion in ETFs for the first six months of the year, representing more than double growth compared to 2020. 

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Stocks record increase in market capitalization

Furthermore, stocks hold the pole position presumably because they are considered less risky than emerging products like cryptocurrencies. However, following the onset of the coronavirus pandemic, the stock market crumbled to historical lows while offering investors a chance to buy. 

Towards the second quarter, the market-led by technological stocks rebounded, hitting record levels. Amid the resurgence, the stock market has already attracted interest from more investors. 

Our research indicates that the top ten most prominent stock exchanges globally cumulatively grew by 15.43% or $12.12 trillion in market capitalization between January and June 2021. The market cap stood at $78.54 trillion in January, surging to $90.66 trillion in June. 

The growth is also fuelled by the emergence of meme stocks like GameStop that surged fuelled by social media activity.

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Justinas Baltrusaitis

Justin crafts insightful data-driven stories on finance, banking, and digital assets. His reports were cited by many influential outlets globally like Forbes, Financial Times, CNBC, Bloomberg, Business Insider, Nasdaq.com, Investing.com, Reuters, among others.