Despite the turbulence in digital assets, interest and demand for Bitcoin (BTC) has increased tremendously in 2021. According to crypto firm Grayscale Investments LLC, more than half of existing investors have entered the market in the last 12 months. The most popular altcoins among BTC investors were Ethereum (ETH) and Dogecoin (DOGE). Keep reading on Kriptokoin.com for the details of the news.
Bitcoin-led crypto adoption is on the rise
About a quarter of the 1,000 respondents to the survey said they already own Bitcoin (BTC), of which 55% said they started investing this year. The results underscore the explosive growth that cryptocurrencies have seen this year. That’s because investors are drawing money into the volatile asset class amid the growing popularity of even utility products like the Non Fungible Token (NFT).
87% of investors who entered the cryptocurrency market and bought Bitcoin have investments in one or more digital currencies in addition to Bitcoin. The most popular altcoins among investors were Ethereum (ETH) and Dogecoin (DOGE). Bitcoin rose nearly 70% in 2021 after a recent sale, while some other tokens, such as Ethereum, saw a fivefold increase in value. Grayscale concluded that:
Nearly 80% of respondents in the US said they would be more likely to invest in the asset class if there is a fund traded on the Bitcoin exchange. However, these products have not yet been approved by the regulators. According to Michael Sonnenshein, CEO of Grayscale Investments, the results of the survey confirm an increasing number of investors considering adding Bitcoin to their long-term portfolio. While 55% of investors define Bitcoin as a “long-term investment”, the rate of those who see it as a “short-term investment” is 37%. Grayscale said investors are increasingly considering the leading cryptocurrency, Bitcoin, as a store of value, and many prefer to hold their investments.