Bitcoin ETFs Fuel Resurgence In Crypto Interest, According To Gemini’s 2024 Report

Crypto exchange Gemini has released its 2024 global crypto report, offering valuable insights into current investor attitudes and ownership trends in the digital asset space, given the newly introduced Ethereum and Bitcoin ETFs. 

Spot Ethereum & Bitcoin ETFs Drive Billions In Institutional Inflows

The report, released Tuesday, shows that after a tumultuous two years, the cryptocurrency market experienced a significant rally in 2024, with long-term holders demonstrating their willingness to accumulate digital assets despite certain challenges following the approval of Ethereum and Bitcoin ETFs. 

Notably, Gemini contends that past investors appear ready to re-enter the market as spot Ethereum and Bitcoin ETFs attract billions in institutional inflows.

The report reveals that crypto adoption has remained stable in key markets, with 21% of individuals in the United States and 18% in the United Kingdom identifying as crypto owners. 

In France, ownership increased from 16% to 18%, while Singapore saw a slight decline, with ownership dropping from 30% to 26%. Marshall Beard, COO of Gemini, commented on the findings: 

Crypto investors have proven their resilience over numerous market cycles throughout the years, and the latest downturn was no exception. The introduction of spot crypto ETFs in the United States and significant progress toward thoughtful regulation in many jurisdictions globally has positioned the industry for strong growth as retail investors rejoin the crypto market or get started for the first time.

Regulatory Uncertainty Remains Major Barrier For Crypto

The report highlights several trends and barriers in the crypto landscape. Notably, nearly two in five non-crypto owners in the US and UK cited regulatory uncertainty as a significant deterrent to investing in digital assets. 

In France, 32% of respondents expressed similar concerns, while nearly half (49%) of those surveyed in Singapore indicated worries about crypto regulations.

Regarding investment intentions, a majority of 57% of crypto owners expressed a willingness to allocate 5% or more of their investment portfolios to digital assets. Additionally, more than a quarter (26%) of previous owners signaled interest in re-entering the market, suggesting a potential influx of capital.

However, Gemini notes that “the gender disparity” in crypto ownership remains pronounced, with 69% of crypto owners identifying as male and 31% as female in 2024, compared to 58% and 42% in 2022. However, women who engage with the crypto market are just as likely as men to adopt a buy-and-hold strategy.

Moreover, the report emphasizes the role of ETFs in driving growth within the crypto sector. In the US, 37% of cryptocurrency owners reported holding some of their assets through Ethereum or Bitcoin ETFs, and 13% indicated they own crypto exclusively through these investment vehicles. 

Finally, cryptocurrency has emerged as a significant issue in US elections for the first time. Per the report, 73% of crypto owners stated they would consider candidates’ digital asset policies when voting for the next president, reflecting the growing importance of crypto in the political landscape.

At the time of writing, Bitcoin is trading at $56,700, recording almost no change from Tuesday’s price as the largest cryptocurrency on the market failed to consolidate above $57,000 in the last 24 hours. 

Featured image from DALL-E, chart from TradingView.com