Recent data from New Zealand-based exchange Easy Crypto has revealed that Australian investors are outperforming their global counterparts in cryptocurrency ownership, with one in five adults currently or previously owning crypto.
Compared to the estimated global crypto adoption rate of just 6.8%, this places Australia firmly in the “early adopters” category of the crypto adoption spectrum, according to the exchange.
While crypto adoption is on the rise for both retail and institutional investors, market experts say Australia’s preference for traditional investments like residential real estate and bonds continues to pose a barrier.
Benjamin Celermajer, director of Magnet Capital, says many local investors still have a more conservative approach.
“Australia hasn’t had a recession in decades, and so I think we’re in a position where people are very comfortable distributing benefits as they have historically, because that has worked for a very long time, and this creates comfort in the system.
In contrast, the United States has faced a decline in residential real estate and increased political volatility, pushing investors to more actively diversify their portfolios in response, according to Celermajer.
“I don’t think that’s necessarily been the case in Australia,” he said.
“Investors here are not too attentive to the opportunities that cryptocurrencies present.”
Global X investment strategist Marc Jocum agrees, highlighting that Australian investors continue to exercise caution around the emerging asset class.
This perception, he added, is particularly strong among the country’s retirees, who may be hesitant to gain exposure to an asset class that does not provide income or has the defensive characteristics of assets like gold or bonds.
“I still think Australians are waiting, watching what might happen. That being said, adoption continues to grow strongly, and I expect this to continue for the foreseeable future.
Jocum added that while there is evidence demonstrating that bitcoin within a portfolio is capable of improving risk-adjusted returns, local investors are aware of its ability to “get to the other side.”
“Many conservative investors don’t like to see a high level of volatility within their portfolio, which is why they tend to gravitate toward traditional asset classes that have proven successful.”
