More than half of the USA’s Bitcoin holders began their investment during the last 12 months, according to the latest Grayscale report.
Grayscale Investments’ third annual report on attitudes and perspectives about Bitcoin shows that demand for Bitcoin recorded a tremendous jump in 2021.
A survey conducted in mid-August showed that, among 1,000 people quizzed, the percentage of people holding Bitcoin in the US rose to 26%.
The report, dubbed ‘Grayscale 2021 Bitcoin Investor Study’, was made in partnership with financial market research firm ‘8 Acre Perspective’, and it demonstrates continued growth in interest, awareness, and adoption of Bitcoin and the digital currency ecosystem at large.
More than half (59%) omostly invested through crypto trading apps like eToro or Coinbase, representing a paradigm shift from last year when more than three-quarters of investors (77%) preferred a Bitcoin exchange.
Investors are eager to buy – a sentiment reflected by the recent all-time high in November 2021, placing Bitcoin closer to $100,000 than it is to zero.
The Grayscale study also showed that most of these investors were ‘hodling’, with approximately 66% of those who purchased Bitcoin more than 12 months ago still owning it today.
Of the investors who have sold, 91% have sold at least some Bitcoin at a profit.
Need for Bitcoin ETF
Even with the rise of market segments and use cases, such as decentralised finance (DeFi) and non-fungible tokens (NFTs), Bitcoin still accounts for 46% of the total value of crypto markets.
Grayscale revealed that more than three-quarters (77%) of US investors said they would be more likely to invest in Bitcoin if an ETF existed.
In October 2021, the concept of a Bitcoin ETF was realised as the Bitcoin futures ETF sponsored by ProShares made its trading debut on the New York Stock Exchange.
The demographics of Bitcoin investors also shifted in 2021.
Bitcoin is increasingly crossing generations to reach older investors, including retirees who are keen to consider Bitcoin investment products as a component of their portfolios.
An ETF that offers direct exposure to the price of Bitcoin is commonly seen by many as the linchpin in a strategy to bridge traditional financial institutions with digital currencies and is widely understood as a potential catalyst for widespread adoption.