BTC Markets report: Bitcoin boom among Australian baby boomers

Australian cryptocurrency exchange BTC Markets has observed a significant increase in elderly customers using its platform over the past financial year.

A growing number of older Australians view crypto assets as a viable investment, according to data provided by one of the country's oldest and largest exchanges. Founded in 2013, BTC Markets said in its annual investor report that the number of investors over 65 had increased by 15%. They are also the group with the largest deposits.

Baby boomers (those born between 1946 and 1964) now account for 5% of the platform's roughly 325,000 customers.

Caroline Bowler, chief executive of BTC Markets, said that “young male traders have given up their monopoly on cryptocurrencies,” as the increase in baby boomers was the second-highest after the 18- to 24-year-old age group.

More than a quarter of the exchange's customers are investors over the age of 44, who have more money to invest. The platform reported that the average initial deposit was highest among those over 65 at $3,200, with an average cryptocurrency portfolio size of $3,700.

Bowler added that low interest rates are a key factor in baby boomers seeking alternative investments such as crypto assets, before adding:

“Baby boomers are usually at a stage in life where they have accumulated a lot of wealth and assets and have years of experience investing in financial markets. They are not worried about allocating a small portion of their portfolios to cryptocurrencies.”

Young Gen Z traders, aged 18 to 24, have much smaller initial deposits and portfolios, about a quarter of those of more experienced traders.

The exchange surveyed 1,800 customers to determine their motivations for investing in cryptocurrencies. The survey found that 34% of respondents were looking to retire early, 28% wanted to diversify their portfolio and 23% had a fear of missing out (FOMO).

In an interview with Bloomberg Crypto on September 15, Bowler said that the company has been studying Singapore’s model of embracing the community and the regulatory challenges of the encryption industry.

She said 28 per cent of Australians said one of the biggest challenges they faced was a lack of local regulation. This has a knock-on effect, as financial advisors are not allowed to advise on crypto-asset investments that help investors reduce risk.

Caroline Bowler, head of BTC Markets, Australia's largest digital asset exchange, discussed the adoption of regulatory measures.

She chats with Haidi Lun and Shery Ahn about some of the iconoclastic takeaways from the BTC Markets Investor Report.

— Bloomberg Crypto (@crypto) September 15, 2021

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