Hong Kong’s retail investors have witnessed a significant surge in their interest in cryptocurrencies this year, according to a recent survey conducted by the Investor and Financial Education Council (IFEC), a subsidiary of the Securities and Futures Commission (SFC), Hong Kong’s securities regulator.
The survey, which took place between June and July 2023, collected responses from 1,000 individuals aged 18 to 69. It revealed a substantial rise in retail investors’ fascination with crypto. In fact, the study found that a noteworthy eight percent of retail investors in Hong Kong had invested in some form of crypto asset in 2023. This demonstrates a significant increase from a mere one percent in 2019.
Interest in Various Crypto Assets
The IFEC survey highlighted that all the surveyed virtual asset retail investors reported holding cryptocurrencies. Additionally, a smaller proportion of six percent showed an inclination towards non-fungible tokens (NFTs), while only two percent ventured into stablecoins.
Future Expectations
Looking ahead, the IFEC report shed light on a growing trend. It revealed that 11 percent of the surveyed investors expressed an intention to invest in virtual assets or related products within the next 12 months. This finding indicates that the momentum behind increased interest in virtual assets may continue in the coming year.
Furthermore, the timing of the survey coincided with the unveiling of the $200 million JPEX scandal. This highlights the relevance and timeliness of the survey’s findings.
Moreover, the report uncovered a significant trend among retail crypto investors in Hong Kong, stating that 75 percent cited their pursuit of short-term returns as a primary motivation for their investments. Additionally, 74 percent believe that virtual assets represent an ongoing investment trend, while 73 percent expressed concerns about missing out on popular investment opportunities.
These statistics indicate a potential need for enhanced investor education and awareness in the region to address the growing interest in virtual assets.
Hong Kong’s evolving interest in virtual assets aligns with the broader global trend of cryptocurrency adoption among retail investors. They are enticed by the potential for quick profits and the increasing recognition of virtual assets as a legitimate investment class.
