eToro

Nearly Half of Millennials Trust Crypto More Than US Stock Market: Survey

Image: Cryptocurrencies, GoodFreePhotos

Nearly half of millennial online traders have more trust in cryptocurrencies and crypto-assets than the US stock market, according to a new survey from eToro, an investment platform. Even among millennials who do not trade crypto, one-third said they would trust crypto over the stock market, indicating the beginning of a generational shift in trust, according to Guy Hirsch, managing director of eToro US.

“At the heart of this change are the asset classes themselves,” Hirsch said.

“Younger investors’ experience with the stock market has seen a great deal of loss of trust, with the fall of Lehman Brothers because of irresponsible practices followed by the worst recession since the Great Depression. Trust further eroded when Americans saw how hundreds of billions of dollars of taxpayers’ money are funneled to the largest financial institutions while their savings evaporated and how banks get free money through quantitative easing while their cost of living continued to rise.

“Immutability is native to blockchains and that makes real-time audit to be sensible and cost-effective and that is why millennials and Gen X perceive crypto exchanges as less likely to be subject to manipulation and less likely to be a place where bad actors get rewarded with taxpayer money.”

As more investors become educated on blockchain and crypto, we will continue this trend play out, Hirsch predicts.

The US-focused online survey, conducted by Provoke Insights, also found that investors across all age groups including millennials are enthusiastic about the prospect of traditional financial institutions offering crypto assets, showcasing rising demand for institutional crypto offerings.

Among investors across all age groups that do not trade crypto, 59% said they would invest in crypto if it were offered by a traditional financial institution. Meanwhile, 92% of current crypto traders would invest more money if a conventional financial institution provided this investing option.

Another key finding of the survey is the growing demand for alternative crypto products with half of investors surveyed expressed interest in a crypto allocation in their 401k plans.

Though demand for crypto-assets in 401k portfolios is clearly on the rise, a number of regulatory and market changes must occur before this becomes a mainstream offering, Hirsch said.

“We would need to see more advisors become educated on crypto assets and getting comfortable recommending their customers to shift into crypto markets from traditional equity markets,” he said. “Mainstream traction will also be aided by the approval of ETFs that track crypto assets. At that point, we could see crypto offerings in 401k portfolios.”

Other popular alternative crypto products cited by respondents include crypto loans, with 76% of online investors expressing keenness in gaining interest on crypto assets, and 47% interested in taking out a loan in crypto. As for crypto traders, 96% said they would like to gain interest on crypto assets and three quarters said they would take out a loan in crypto.  

The eToro survey results echo a study published in December 2018 by Cambridge Centre for Alternative Finance which found that despite the severe bear market, the number of verified users of cryptocurrencies almost doubled in the first three quarters of 2018, showcasing rapid adoption of cryptocurrencies.

According to the report, total user accounts at service providers now exceed 139 million with at least 35 million identity-verified users, the latter growing nearly 4X in 2017.

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eToro launches #WelcomeToTheClub Premier League UK campaign

Global multi-asset investment platform eToro has launched eToro FC, a community for football fans interested in learning about cryptoassets and investing, as part of its new #WelcomeToTheClub Premier League campaign.

In August, eToro partnered with seven Premier League clubs in deals that were paid for using bitcoin. From today, eToro will work with those seven clubs (Cardiff City FC, Crystal Palace FC, Brighton & Hove Albion FC, Leicester City FC, Newcastle United FC, Southampton FC and Tottenham Hotspur) to help educate football fans on investing by providing educational materials, tutorials and market news. Members of the eToro FC community will also have access to unique football content and the ability to enter competitions.

Iqbal V. Gandham, UK Managing Director at eToro, said: “#WelcomeToTheClub will help educate football fans who are new to investing. We carried out our Premier League sponsorship deals using bitcoin as a first step in showing the role cryptoassets could play in global sport. We hope to continue this with information which enhances fans knowledge on the potential of cryptoassets along with investment in more traditional asset classes.”

Kicking off the campaign, the brand has signed up comedian and TV presenter Lloyd Griffith to front the video series, eToro Crypto Factor. This will see leading players from each partnered Premier League club taking on three football challenges which have similar traits to the world of investing.

A teaser video can be viewed here: 

https://www.youtube.com/watch?v=tfwKk8OgY8c&list=PLtkvShdSzegqzuWiJurILXO7W_RdD6Oo_

Southampton: https://www.youtube.com/watch?v=9ii1hh6kzIM&list=PLtkvShdSzegqzuWiJurILXO7W_RdD6Oo_&index=2

Crystal Palace: https://www.youtube.com/watch?v=8dntfk6gor8&index=3&list=PLtkvShdSzegqzuWiJurILXO7W_RdD6Oo_

Brighton: https://www.youtube.com/watch?v=jCCk_lmvNo0&list=PLtkvShdSzegqzuWiJurILXO7W_RdD6Oo_&index=4

Leicester: https://www.youtube.com/watch?v=Hr2N97nWzh0&index=5&list=PLtkvShdSzegqzuWiJurILXO7W_RdD6Oo_

Cardiff: https://www.youtube.com/watch?v=KCRqCkwxnyo&index=6&list=PLtkvShdSzegqzuWiJurILXO7W_RdD6Oo_

Newcastle: https://www.youtube.com/watch?v=9zhgjx4tfbo&list=PLtkvShdSzegqzuWiJurILXO7W_RdD6Oo_&index=7

Further club videos will be released throughout the season.

#WelcomeToTheClub branding will be seen throughout the Premier League with eToro incorporating the campaign across their club partnership rights including pitch LEDs, stadium advertising, social media and more.

Learn more about the investment community for the fans at www.eToroFC.com #WelcomeToTheClub 
About eToro:

eToro empowers people to invest on their own terms. The platform enables people to invest in the assets they want, from stocks and commodities to cryptoassets. eToro is a global community of more than ten million registered users who share their investment strategies; and anyone can follow the approaches of those who have been the most successful. Due to the simplicity of the platform users can easily buy, hold and sell assets, monitor their portfolio in real time, and transact whenever they want.

eToro is regulated in Europe by Cyprus Securities and Exchange Commission and regulated by the Financial Conduct Authority in the UK.

Cryptoassets are unregulated and can fluctuate widely in price and are, therefore, not appropriate for all investors. Trading cryptoassets is not supervised by any EU regulatory framework. Your capital is at risk.