The New Era of Crypto Assets

Crypto Assets: The Future of Investment?

Crypto assets are becoming increasingly significant among European investors. Currently, 25 million people across Europe are already investing in cryptocurrencies, which accounts for approximately 8% of all adults. This trend is on a strong upward trajectory. The rise is driven by the potential for high returns and the growing acceptance of well-known cryptocurrencies as an asset class.

Who Invests in Crypto Assets?

Crypto investments are particularly popular among young people, especially men. Currently, 72% of those investing in cryptocurrencies are male, and 41% are between the ages of 18 and 34. However, the proportion of women investing in crypto assets is expected to rise to 37% in the future*, indicating broader acceptance and attractiveness of crypto assets.

*There is no guarantee that any forecasts made will come to pass.

Why Crypto Assets Are Here to Stay

Crypto assets are not just a passing trend. The demand for cryptocurrencies is growing significantly. With an estimated 8 million new first-time investors expected in the next 12 months, the market is set to expand further. This sustained interest is fueled by significant historical returns and the increasing integration of cryptocurrencies into traditional financial systems.

How to Invest in Crypto Assets

Investing in crypto assets can be done in various ways, one option being Exchange-Traded Products (ETPs). ETPs function similarly to Exchange-Traded Funds (ETFs) in that they track the performance of an underlying asset. However, unlike ETFs, they typically provide access to only one type of asset, such as Bitcoin.

With ETPs, you can conveniently invest in cryptocurrencies without having to buy and store them directly. This reduces the risk of losing access to your crypto wallet due to hacking or the loss of your master keys. Therefore, ETPs offer a secure and regulated way to invest in the emerging crypto market.

The Impact of Crypto on Traditional Investment Portfolios

Crypto assets are transforming traditional investment portfolios. People who invest in cryptocurrencies tend to diversify their holdings by integrating both traditional and digital assets. This diversification can enhance performance and spread risk. For investors, incorporating a small allocation of cryptoassets into their investment strategy could offer a balanced approach that combines the stability of traditional investments with the growth potential of cryptocurrencies.

Risk: Diversification and asset allocation may not fully protect you from market risk.

Source: 25.04.2025 BlackRock People & Money Spotlight: Crypto investing in Europe/YouGov Plc.

Risk Warnings

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Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

Regulatory Information

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