Investors move low-yielding savings into cryptocurrencies
Investors are increasingly moving money into crypto assets, new research has found.
A study from investment app Ziglu found that 63 per cent of crypto investors have moved money into the asset class, with savings accounts and cash ISAs by far the biggest source of funds.
35 per cent of crypto investors said that their main reason for investing in digital currencies is to find another long-term investment, while the same number said their main reason is to diversify their portfolio.
30 per cent said they are attracted by the performance of cryptocurrencies.
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The research also showed that 30 per cent of crypto holders regard their investments as fun given that they only invest small amounts of money, while 29 per cent said they invest because of a fear of missing out.
However, 17 per cent said they invest in crypto as it is an important alternative asset class and 15 per cent have invested as a hedge against inflation.
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“Cryptocurrency investment is increasingly competing with other mainstream investment and saving accounts with many investors switching funds from savings accounts, cash ISAs and shares,” said Mark Hipperson, founder and chief executive of Ziglu.
“Investors consider crypto-assets as a long-term investment and as a way of diversifying their holdings.”
Bitcoin prices have climbed more than 70 per cent in the past three months, according to Ziglu, with other cryptocurrencies including Ether, Litecoin and Dogecoin also recording strong gains, but on the whole they remain below previous record highs following recent market volatility.
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