Cryptocurrency attracted three-quarters of new investors who joined eToro during 2017 and 2018. Among those who bought crypto, one in nine moved into stocks, commodities, or forex afterward. Most dive
Cryptocurrency attracted three-quarters of new investors who joined eToro during 2017 and 2018. Among those who bought crypto, one in nine moved into stocks, commodities, or forex afterward. Most diversifiers were under 35, with 44% of those branching into other assets between 25 and 34.
Paul Familiaran, eToro's Southeast Asia head, credits crypto with opening doors to investing. "For many, investing has been seen as the preserve of the wealthy and/or something that is too complicated for the average person to take part in. Crypto has changed this," he said. "Across Asia, there are now people investing that would otherwise not be, which marks a positive shift in investor behavior."
China and Asia Pacific also drew higher numbers of female traders. Women accounted for 16% of eToro's traders in China and 14% across the rest of Asia, compared to 8% globally. "Regardless of whether you believe in the long-term opportunities provided by crypto, it has been an essential entry point for investors in Asia and all around the world," Familiaran said. "Crypto has captured the interest of a new demographic of traders in Asia that would otherwise not be investing in our view. In China and more widely across Asia, this has also translated into a significant proportion of female investors signing up to eToro and trying out trading for the first time."
Crypto investors displayed more patience than traders in other asset classes. Holdings lasted 71 days longer on average than ETFs, the second-most-persistent asset category, suggesting these buyers saw crypto as a long-term investment rather than a quick trade.
Even as the broader crypto market cooled, trading volumes kept expanding globally. Square reported $166 million in Bitcoin revenue during 2018, according to earnings the payments company released February 27. Bitcoin sales represented 5% of Square's $3.3 billion in total 2018 revenue.
Square launched cryptocurrency trading through its Cash App in January 2018. By December, the app had grown to 15 million active users, double the prior year.
Data from Skew, a London analytics firm, revealed robust trading activity over the previous 120 days, with XBT/USD pairs on BitMEX averaging $65 million in hourly volume. Crypto markets rallied over the past two weeks, with total market capitalization climbing more than 20% to reach $134 billion on Tuesday, the best performance in nearly six weeks. Daily trading volumes hit $34 billion on Tuesday, their highest level in almost nine months and above what the market saw in May 2018.
