Wealthier Australians were more found to be more likely to own cryptocurrencies, with 47 per cent of respondents with household income in excess of $100,000 maintaining an exposure compared to 24 per cent of those with household income of $99,000 or below.
As [housing] affordability continues to be an issue, we’re seeing more young people look for other options to grow wealth.
— Jonathon Miller, Kraken Australia managing director
However, almost 60 per cent of crypto owners said they are likely to sell off some of their exposure in the next 12 months, with 35 per cent “very likely” to sell some of their crypto assets.
Just under a quarter (23 per cent) said they were unlikely to sell any of their crypto holdings, complying with the Millennial and Gen Z investing maxim to “HODL” (hold on for dear life).
One in four survey respondents agreed with the proposition that cryptocurrencies are a “good alternative to having an investment property”.
The belief was higher among Millennials (39 per cent) and Gen Z (31 per cent) compared with 24 per cent of Gen X respondents and just 13 per cent of Baby Boomers.
Of the cohort who said they are likely to purchase cryptocurrency in the next 12 months, 67 per cent believe these digital assets are a good alternative to an investment property.
The finding comes as rising real estate prices show no signs of abating. According to researcher CoreLogic, housing markets across the country continued to surge in May, with national home values climbing 2.2 per cent in the month.
Dwelling values in the country’s capital cities have jumped by 9.4 per cent over the past year, blocking many would-be first home buyers from accessing the market.
One in five respondents view crypto holdings as being useful in saving for a home or investment property deposit, indicating that purchasing crypto is an “easier” way to save than deploying cash to a bank savings account.
One in five respondents said they would use some of their superannuation balance to invest in cryptocurrencies if allowed, with 35 per cent of Millennials hopeful of using their retirement savings to buy digital assets.
Financial Services Minister Jane Hume last month shocked the market by endorsing cryptocurrencies as a legitimate “asset class” and pledging not to “stand in the way” of crypto investors.
Kraken Australia managing director Jonathon Miller said: “Property has been a cultural norm and high on the wishlist for most investors, but as affordability continues to be an issue, we’re seeing more young people look for other options to grow wealth.
“It’s these younger Australians who are changing the dynamic and with more education we expect the broader market to come around to the idea of investing in cryptocurrency.”