The Australian Securities and Investments Commission (ASIC) Chair Joe Longo has raised concerns about the massively increasing interest in digital currencies within the country. This is due to a survey suggesting that young asset class investors are negligent of the risks involved.
Following the heat of the COVID-19 pandemic, global digital currency adoption has surged astronomically. Australian investors have jumped on the bandwagon, as evidenced by past trends and a recent survey.
On August 11, The ASIC released research on investment behavior amongst investors within Australia. The Report 735 Retail Investor Research (REP 735) aimed to survey the attitudes, behavior, and motivations behind investor sentiments since the start of the COVID-19 pandemic.
The survey sought the responses of 1,053 retail investors, and up to 44% noted having investments in digital currencies. This spells the growing interest in digital currencies amongst the populace as mainstream recognition surges. At this rate, digital currencies are the second most held asset class, only behind Australian shares.
Additionally, the research shows that about 1/4 of the retail investors exclusively held digital currencies. Also, per the report, while banking apps remain the most used by investors, three of the next most commonly used apps are digital currency platforms.
Longo’s concerns come from the fact that only 20% of investors in digital currencies acknowledge the risks involved.
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