Survey: 75% of emerging market investors want more cryptocurrencies

A recent survey revealed that up to 75% of investors in emerging markets in Asia Pacific and Latin America are looking to increase their exposure to cryptocurrency investments.

Researchers at consumer sentiment firm Toluna surveyed 9,000 people from 17 countries for a report released in February, which found that more investors in emerging markets in Asia Pacific and Latin America consider cryptocurrency investments In a long-term upward trend. This is in stark contrast to developed markets, which tend to view cryptocurrencies as being in another hype cycle.

Emerging markets appear to be the most lucrative growth markets for the cryptocurrency industry, with surveys showing that 32% of consumers trust cryptocurrencies, compared to just 14% in developed markets such as the US and EU.

The data suggests that knowledge and understanding of the crypto market may be two major factors contributing to the wide variation in investment strategies. While 61% of respondents said they were aware of cryptocurrencies, only 23% said they were familiar with the asset class. Toluna suggests this may be because "it's a complex concept that's not easy to understand."

Ads for cryptocurrencies and NFTs can be found in many places today, including professional stadiums around the world, and these ads drive awareness, but not necessarily understanding.

Investing in cryptocurrencies accounted for 41 percent of the emerging markets surveyed, compared to 22 percent in developed markets. This disparity in trust is further illustrated by the lower risk awareness of emerging market investors. Only 25% of investors in emerging markets believe that getting involved in cryptocurrencies is too risky, compared with 42% of investors in developed markets.

However, the report noted that the overall perceived risk of cryptocurrencies remains high, with “45% of consumers believing that cryptocurrencies are no guarantee of success.” It continued:

“61% of consumers trust fixed, traditional deposits, while only 23% say they trust cryptocurrency deposits in today’s market.”

The survey concluded that the generation with the highest percentage of crypto investors are millennials. Toluna found that an average of 40.5 percent of surveyed millennials aged 25-34 in emerging and developed markets are invested in cryptocurrencies. This data lines up with other similar surveys such as Morning Consult, which found that 48% of millennial households own cryptocurrencies by December 2021.

Gen Z investors aged 18-24 in emerging and developed markets invest at a slightly lower rate than millennials at 40%. However, baby boomers aged 57-64 have the lowest investment rates, with only 21% planning to invest in cryptocurrencies.