FINRA Study Indicates Steady Crypto Ownership but Waning Interest in Bitcoin Among US Investors

• Stable Participation: The percentage of US investors holding crypto stayed at 27% over three years, reflecting consistent adoption despite market fluctuations.

• Risk Aversion on the Rise: High-risk investment behavior dropped to 8% overall, with younger investors under 35 seeing the sharpest decline to 15%.

• Declining New Entrants: Only 8% of investors joined the market in the last two years through 2024, down significantly from 21% in 2021, per FINRA’s findings.

Discover the latest crypto investment trends in the US for 2024: Steady participation but waning interest signals caution. Explore FINRA’s insights and what it means for your portfolio—stay informed today.

What Are the Key Crypto Investment Trends in the US for 2024?

Crypto investment trends in the US for 2024 show a stable base of participants but a notable decline in enthusiasm for expansion or new investments, as detailed in a comprehensive study by the Financial Industry Regulatory Authority (FINRA). The survey, spanning July to December 2024, involved 2,861 US investors and a broader state-by-state poll of 25,539 adults. This stability contrasts with earlier peaks, highlighting a broader move toward conservative financial strategies.

How Has Investor Risk Tolerance Evolved in the Crypto Space?

Investor risk tolerance has notably decreased, with those engaging in high levels of investment risk falling to 8% in 2024 from 12% in 2021, according to FINRA’s analysis. This four-percentage-point drop is even more pronounced among younger demographics, where the under-35 group saw a nine-point decline to 15%. Such shifts align with macroeconomic pressures, including persistent uncertainty around interest rates and inflation, prompting many to favor more secure assets like bonds or traditional stocks. Experts from financial regulatory bodies emphasize that while crypto’s volatility remains a draw for some, the majority now view it as a high-stakes gamble, with 66% of respondents labeling it as risky—up from 58% three years prior. This perception has tempered aggressive pursuits, as evidenced by the reduced pace of new market entries.

US investors are not considering buying crypto as much as they used to, as risk-taking behavior has dropped, according to a study from the Financial Industry Regulatory Authority (FINRA). The percentage of crypto investors was unchanged between 2021 and 2024 at 27%, but the number of investors considering either purchasing more or buying for the first time dropped to 26% in 2024 from 33% in 2021, FINRA reported on Thursday.

The industry regulator found that those with “high levels of investment risk” dropped four percentage points to 8% between 2021 and 2024. The biggest drop was among investors under 35, which shaved nine percentage points to 15%.

Investment into crypto typically spikes during periods of high optimism in the wider macroeconomic environment, but uncertainty over interest rates, inflation, and the economy has likely seen investors turn to perceived safer assets.

Crypto Flagged as Risky but Key Tool for Financial Goals

FINRA’s study, conducted between July and December 2024 with 2,861 US investors and a state-by-state online survey of 25,539 adults, found 66% of respondents flagged crypto as a risky investment, up from 58% in 2021.

However, a third of investors responded that they believed they needed to take big risks to reach their financial goals, which grew to 50% of respondents for those aged 35 and under. Around 13% of investors, including nearly one-third of individuals under 25, also reported purchasing meme stocks and other viral investments.

Pace of New Investors Cools

The pace of investors entering markets has also declined compared to 2021. Only 8% of investors reported they had entered the market in the last two years to 2024, compared to 21% in 2021.

“The surge of younger investors who entered the market early in the pandemic, as reported in the 2021 NFCS, reversed direction as the pandemic ended, bringing the share of US adults under 35 who invest back down to the 2018 level,” FINRA noted.

Overall, FINRA found the results show a “modest trend toward more cautious attitudes and behaviors” relative to the 2021 survey.

Frequently Asked Questions

What Factors Are Driving the Decline in US Crypto Investment Interest?

The decline in US crypto investment interest stems from heightened economic uncertainty, including fluctuating interest rates and inflation concerns, as highlighted in FINRA’s 2024 study. Investors are increasingly prioritizing safer assets, with risk tolerance dropping across age groups, particularly among those under 35, leading to fewer new entries and expansions in crypto holdings.

Is Crypto Still Seen as Essential for Achieving Financial Goals Among Young Investors?

Yes, crypto remains viewed as a potential tool for financial goals by many young investors, though with growing caution. FINRA’s survey indicates that 50% of those under 35 believe big risks are necessary to meet objectives, yet overall participation in high-risk assets like crypto has stabilized at lower levels compared to pandemic-era surges.

Key Takeaways

• Stable Crypto Ownership: US investor participation in crypto held steady at 27% from 2021 to 2024, demonstrating resilience in core adoption despite broader market shifts.
• Declining Enthusiasm: Interest in increasing crypto investments or starting anew fell to 26% in 2024, reflecting a broader retreat from high-risk behaviors amid economic volatility.
• Youth Risk Trends: Younger investors under 35 showed the most significant drop in high-risk engagement, down to 15%, underscoring a generational pivot toward caution—consider diversifying portfolios for balanced growth.

Conclusion

In summary, crypto investment trends in the US for 2024 reveal a landscape of steady ownership at 27% but diminishing appetite for further risk, as investor risk tolerance evolves under macroeconomic pressures, per FINRA’s authoritative analysis. This cautious demeanor, especially among younger cohorts, points to a maturing market where education and diversification play key roles. As conditions stabilize, staying attuned to these shifts could position investors for informed decisions in the evolving digital asset space.