From over a thousand British adults surveyed aged between 18 and 30, four in ten (40%) revealed they now have a more positive view towards cryptocurrencies than when Bitcoin reached an all-time high of over $68,000 in November 2021. The cryptocurrency market has lost over $2trn in value since then.
The survey, conducted by Opinium Research, also shows that the number of young British adults invested in cryptocurrencies is nearly the same as the number invested in Stocks and Shares ISAs, 27% and 28% respectively.
Familiarity of cryptocurrencies is high, with nearly nine in ten (89%) being somewhat familiar, and one in five (21%) claiming to be very familiar. Non-fungible tokens or NFTs have also proved to be familiar, with seven in ten respondents (70%) being at least somewhat familiar.
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"Many events have unfolded across crypto and financial markets in 2022. This is encouraging them to seek out more information to educate themselves," said Jason Guthrie, head of digital assets.
"Cryptocurrencies are maturing into a traditional asset class and, as with any other asset class, it is essential that you do your research, know what you're investing in and have a long-term investment horizon."
When it comes to knowledge on cryptocurrencies, 48% of young adults do not know how they work, yet over half (56%) say they are likely to invest in cryptocurrencies in the future.
Nearly 60% of respondents do not think there is enough information available to them from sources that they trust, highlighting the importance for traditional financial services firms and those offering access to cryptocurrencies to provide high-quality and accessible information to support this demand for education, WisdomTree said.
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up to 27% of young adults said they would be more likely to invest if cryptocurrencies were more established in financial services. Nearly six in ten (56%) would be more comfortable if there was wider support for the asset class from government and regulators.
"The digital asset ecosystem is maturing and more could benefit as it becomes more regulated," said Adria Beso, head of platforms distribution for Europe at WisdomTree.
"In addition to this, whilst the recent volatility may have provided an attractive entry point to invest in cryptocurrencies, it is essential that investors focus on increasing their knowledge and understanding before investing."
Beso noted that firms offering access to cryptocurrencies "have a duty to produce high-quality, easy to understand and accessible information to help people make informed decisions".