The recent approval of spot Bitcoin exchange-traded funds (ETFs) in the United States has sparked increased interest in Bitcoin among Australian retail investors, according to a recent survey. The survey, conducted as part of the Independent Reserve Cryptocurrency Index, found that Bitcoin sentiment in Australia rose by 25% following the approval, and there was also a slight increase in adoption rates in 2024. However, uncertain economic conditions hindered further adoption. The survey, which included 2,100 adults, revealed that the increase in positive sentiment was primarily driven by individuals aged 55 and above, with favorability towards Bitcoin doubling among this group. Independent Reserve CEO Adrian Przelozny commented on the findings, stating that sentiment has clearly shifted and that a phase of renewed optimism and growth has begun.
According to the survey, 19% of respondents expressed an interest in investing in an Australian Securities Exchange (ASX)-listed spot Bitcoin ETF if one were available. The highest levels of interest were observed among individuals aged 25 to 34 and 35 to 44, with 29% and 30% respectively. Additionally, approximately one-third of respondents indicated that they were likely to invest in Bitcoin in the long term through a self-managed retirement fund. However, there was a divide among these respondents regarding whether they would prefer to access Bitcoin through a crypto exchange or an ETF.
Overall, the survey revealed that crypto ownership in Australia increased by 1.9% to reach 27.5% between 2022 and 2024. Notably, the largest increase in ownership was observed among individuals aged 55 to 64 and 65 and above, with increases of 128% and 200% respectively.
In light of these findings, an Independent Reserve spokesperson suggested that stronger regulation, the introduction of an ASX-listed spot Bitcoin ETF, and greater adoption by businesses could further bolster positive sentiment.
However, while ownership and sentiment towards Bitcoin have improved, there are still challenges to overcome. The report highlighted issues such as price volatility, a lack of consumer protection, and confusion, which continue to deter new investors from entering the crypto market. Additionally, 18% of respondents who do not currently invest in crypto expressed a desire to do so but cited uncertain economic conditions as a deterrent. Similarly, 18% of crypto investors stated that they are considering selling their crypto holdings to cope with the rising cost of living and increasing interest rates.
In conclusion, the survey indicates that the approval of spot Bitcoin ETFs in the US has sparked increased interest in Bitcoin among Australian retail investors. However, challenges such as price volatility and uncertainty surrounding the economy continue to impact adoption rates.