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Bitcoin Interest Increases Across Demographics

 The Grayscale team released their 2021 Bitcoin Investor Study, which looks to measure sentiment and interest in the digital currency.



There were 1,000 consumers surveyed between the ages of 25 and 64. Each consumer had at least $10,000 in household investable assets, at least $50,000 in household income, and are responsible for making some or all of the financial decisions in their household.


Although 1,000 people is not necessarily the most robust study to ever be conducted, Grayscale has been running this study for the last three years and can provide us directional guidance on how investors and the market are thinking about bitcoin.

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The key takeaways from the study are interesting:


  • More than one-quarter (26%) of surveyed investors already own Bitcoin.
  • More than half (59%) of surveyed investors are interested in Bitcoin investments - marking a notable increase from 2020 (55%) and 2019 (36%). 
  • More than half (55%) of investors who currently own Bitcoin began investing over the last 12 months.
  • Interest in Bitcoin investment products rose significantly among older investors -- between ages 55 and 64 (46% in 2021 from 30% in 2020) -- and female investors (53% in 2021 from 47% in 2020).
  • Most Bitcoin owners (87%) own one or more other digital currencies.


It is surprising to see that more than 26% of people surveyed in the United States say that they already own bitcoin.


This is up from 23% last year, but still seems higher than I would have guessed. There may be some bias in the data since only people over the age of 25 were surveyed. Either way, there is a measurable increase in ownership from 2020 to 2021.

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Another interesting takeaway from the study was this line — “More than three-quarters (77%) of U.S. investors said they would be more likely to invest in Bitcoin if an ETF existed.


It is no surprise that an ETF would lead to an increase in capital inflows to the asset, but 77% of investors is a very high number. It adds more pressure to the regulators who have only recently approved a bitcoin futures ETF and continue to refrain from approving a bitcoin spot ETF. If this data is directionally correct, a bitcoin spot ETF approval could potentially lead to tens of billions of dollars in inflows almost immediately.


The least surprising part of the study is that the percent of the population who is interested in bitcoin continues to increase. Here are the data points from the last three years when participants were asked about their interest level in owning bitcoin:


The exact numbers don’t matter nearly as much as the direction of progress. When you see an increase in interest like this, you are likely to ask “what is driving the new interest?”


There are some people coming for speculation, some people coming for payments technology, and some people coming for store of value as an inflation hedge. Sometimes people show up for all three.


But if we look at the data for people between the ages of 55 and 64, we can see a ridiculously high increase from 30% in 2020 to 46% in 2021. This is a notable point because these investors have the largest portfolios in the legacy market, they are most likely to hold gold, and their asset allocation decisions have a high probability to bleed over into their professional lives as corporate executives, asset managers, etc.


If you are willing to put your personal assets into bitcoin, you are more likely to allocate your company’s balance sheet or managed funds into the asset as well.


Overall, I highly suggest you read the source material for this study. It is packed with information and nuance.


Bitcoin continues to gain adoption and interest across demographics. For a fixed supply asset, increases in demand mean that the US dollar exchange price has to increase to accommodate everyone. Click here to read the report.

Hope you have a great day.

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