Cryptocurrency ownership in the UK has reached unprecedented levels, with seven million adults now owning digital assets, up from five million in 2022.
This increase comes at a time when Bitcoin is witnessing a significant rise, rising to $95,000 after important global events such as the election of Donald Trump in the United States.
The latest report from the Financial Conduct Authority (FCA) highlights the sharp increase in the number of individuals owning cryptocurrencies such as Bitcoin and Ethereum. Ownership rose to nearly 12% of UK adults by August, compared to 10% in June last year. It is worth noting that there has been a significant rise in those investing large amounts: the proportion of people who own crypto assets between £1,000 and £10,000 has jumped from 20% to 36%. The average holding value is now £1,842, up from £1,595 in 2022.
However, the Financial Supervision Authority warns of growing misconceptions about investor protection. One in five cryptocurrency holders now believe they would be eligible for compensation if something went wrong – a figure that has doubled from one in ten in 2022. The regulator reiterates that cryptocurrencies are still largely unregulated, and should be… Investors are prepared to lose all their money.
The report also points to a worrying rise in borrowing to finance cryptocurrency purchases. While most buyers are using readily available cash, 14% have turned to credit cards or other forms of borrowing, up from 6% in 2022. Additionally, more cryptocurrency holders are participating in “staking” – where they allocate tokens. Their tokens are temporarily supported to support blockchain networks in return. To get rewards.
Demographically, cryptocurrency ownership skews toward males, younger adults, higher socioeconomic groups, and higher income earners. The Financial Conduct Authority (FCA) found that people aged 18 to 34, women and those with holdings of at least £1,000 are more likely to mistakenly believe they have protection against losses.
Debate is heating up over the future of cryptocurrencies, with enthusiasts predicting that digital currencies will integrate into mainstream finance, while critics say they facilitate illicit activities and represent a speculative bubble. President Trump’s pledge to make the United States the “cryptocurrency capital of the planet” has raised expectations for a more favorable regulatory environment, contributing to Bitcoin’s recent rally.
The UK’s seven million cryptocurrency owners now compare with an estimated 11.3 million adults who own shares directly, according to the FCA’s 2022 Financial Life Study.