FCA Research Reveals 2.3 Million Adults Now Hold Cryptoassets

FCA released its fourth consumer research themed on cryptoassets ownership. The 2021 research follows heightened public interest and media coverage, alongside continued growth of the cryptocurrency market, including high cryptocurrency prices. It also comes after more widespread involvement of financial services firms in the market, and significant institutional investment. 

The research shows that around 2.3 million adults now hold cryptoassets, up from 1.9 million in 2020. Median holdings have risen (up from £260 to £300) in a strong period of price increases, but the profile of cryptocurrency owners has not changed substantially – the population remains skewed towards men who are over 35 and are from the AB social grade.

Although 78% of adults have now heard of cryptoassets, up from 73% in a year, overall understanding of cryptocurrency has declined, with only 71% correctly identified the definition of cryptocurrency from a list of statements, suggesting that some crypto users may not fully understand what they are buying. However, as cryptocurrencies appear to have become more normalised, people's attitudes to them have shifted. 38% of crypto users regard them as a gamble, down from 47% last year, and more see them as an alternative or complement to mainstream investments, with half of crypto users saying they intend to invest more.

Sheldon Mills, FCA's Executive Director, Consumers and Competition said: "The research highlights increased interest in cryptoassets among UK customers. The market has continued to grow, and some investors have benefitted as prices have risen. However it is important for customers to understand that because these products are largely unregulated that if something goes wrong they are unlikely to have access to the FSCS or the Financial Ombudsman Service. If consumers invest in these types of products, they should be prepared to lose all their money.”