New research1 from Citigate Dewe Rogerson among investors with investments in crypto-currencies, reveals 56% intend to buy more over the next 12 months, compared to 31% who plan to retain or reduce their exposure. Despite the recent volatility in the market, just 8% intend to sell all their crypto-currency holdings.
The findings, which are published in a new report entitled: ‘Investor Perception: Crypto-Currencies’, (to register for a copy of the report click here) reveals over the next 12 months 54% of financial professionals interviewed anticipate crypto valuations will rise, compared to 32% who think they will fall. Between now and 2021, 32% think there will be a dramatic increase in valuations, and a further 18% anticipate a slight rise. Less than one in three (28%) think there will be a fall.
Phil Anderson, Executive Director at Citigate Dewe Rogerson said: “Many crypto currencies have seen a huge increase in valuations, but also exceptional levels of volatility. Crypto-currency millionaires have been created, but depending on when they invested, many other investors have lost money.
“However, despite the significant levels of volatility and price fluctuations, our research reveals many investors and financial professionals remain optimistic about the future for crypto currencies.
“At the start of the year, the market capitalisation for crypto-currencies was around $800 billion, but by 2021 over half of the financial professionals (59%) we interviewed expect it to be over $1 trillion, while 15% anticipate it to be more than $2 trillion.”
Citigate Dewe Rogerson’s separate research with financial professionals reveals some key trends that could support an increase in crypto currency valuations.
Some 62% of financial professionals interviewed expect there to be a dramatic increase in the level of regulation around crypto-currencies over the next 24 months, while a further 11% anticipate a slight increase. 44% believe there will be an increase in the level of trading and investing in crypto-currencies if more regulation is introduced.
Market capitalisation of crypto-currencies set to rise
At the start of this year, the market cap for crypto-currencies was around $800 billion. Over half (59%) of financial professionals estimate that it will be worth over $1 trillion and 15% think it could be over $2 trillion within the next three years. Just 19% think the market will shrink and that the market cap will be below $800 billion by 2023.
Big firms set to make more use of crypto-currencies
More than two thirds (68%) of financial professionals interviewed think larger firms will increase their holdings of crypto-currencies over the next three years for a variety of reasons. 68% believe they will increasingly want to use crypto-currencies with smart contracts or with other blockchain technologies, and 54% think there will be an increase in them using crypto-currencies as part of their fund raising. Half (50%) there will a rise in them using these to pay suppliers.
Cryptocurrencies used as payment or money transfer methods
Some 22% of financial professionals think there will be a dramatic increase in the use of digital currencies as payment or money transfer methods over the next five years, and 48% think there will be a ‘moderate’ rise in their use for this.
Growing use of blockchain
Some 44% of financial professionals interviewed believe there will be a dramatic increase in the use of blockchain technologies over the next five years, and 33% think there will be a moderate rise.
Phil Anderson said: “Whatever the future holds for the crypto-currency market, one thing is certain – it will continue to attract billions of dollars, dominate the headlines and fuel heated debate about what is likely to happen.”
(to register for a copy of the report click here).
Notes to editors
1146 people in the UK who have invested in crypto-currencies were interviewed on 28th February 2018. Of these 146 people, 104 still owned some crypto-currencies. The research was conducted online by the market research company Consumer Intelligence.
30 financial services professionals were interviewed in February and March 2018 by the market research company PollRight.
About Citigate Dewe Rogerson
Citigate Dewe Rogerson is a leading global financial services communications company with offices around the world. Headquartered in London, it has extensive experience of working with leading fintechs, blockchain propositions, as well as FX, investment management and other financial services companies.
It also has a unique research proposition that can identify key trends in markets before they happen. To find out more about Citigate Dewe Rogerson’s proposition in the fintech, blockchain and crypto-currency markets, please contact Phil Anderson/Aramide Debo-Aina/Will Easton on +44 (0)20 7638 9571 or at [email protected] / [email protected].