According to the International Organization of Securities Commissions (IOSCO), crypto ownership among retail investors has surged since 2020, despite significant market volatility.
An Oct. 9 IOSCO report revealed that in 15 out of 24 jurisdictions surveyed, at least 10% of retail investors owned cryptocurrencies last year, with six jurisdictions reporting ownership levels of 30% or more. This marks a stark increase from 2020, when only 1% to 5% of investors in half the responding jurisdictions owned crypto.
The report highlights ongoing risks such as market volatility, investor misunderstandings, regulatory gaps, and scams, echoing concerns from its 2020 findings. Despite high-profile bankruptcies and a bear market that saw indexes drop 73%, retail investor interest remains robust.
Many new investors, particularly those under 40, are motivated by fear of missing out (FOMO), low entry costs, and social media advice. In the U.S., nearly 60% of investors under 35 have considered crypto investments, with 44% of Gen Z starting their investment journey in this space. IOSCO emphasizes the need for enhanced investor protection and education to navigate the evolving crypto landscape.