This article was originally published on ETFTrends.com.
It is not inaccurate to say plenty of investors have heard about bitcoin, the largest of the digital currencies. However, data suggest many investors are not actually investing in cryptocurrencies.
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“Less than 8 percent of Americans own cryptocurrencies, according to a new study by personal finance website Finder.com,” reports CNBC. “The site surveyed 2,000 adults in the United States in February."
The results show the hype around cryptocurrencies is not yet mirrored by reality, said Aswath Damodaran, who teaches finance and valuation at the New York University Stern School of Business.
Bitcoin futures debuted on the Cboe in December, followed by a launch on the CME. Nasdaq Inc. is still considering entering the bitcoin futures competition. Market observers previously expected Nasdaq to launch futures on the digital currency this year, perhaps as early as the second quarter. However, margin requirements for bitcoin futures are high, potentially keeping many investors out of the bitcoin futures arena.
Perhaps another issue is exchange traded funds, or lack thereof. In the U.S., regulators have yet to approve any ETFs dedicated to cryptocurrencies.
ETF Issuers Withdraw Bitcoin Funds
In fact, ETF issuers have been withdrawing plans for bitcoin funds. Direxion, ProShares and VanEck are among a handful of ETF issuers that have withdrawn filings to launch bitcoin ETFs at the request of U.S. regulators. The SEC requested the issuers withdraw their filings.
“The share of Americans who own several other well-known digital coins underscores how far these currencies have to go: Less than 2 percent of Americans own Ethereum and less than 1 percent own Ripple, the survey found,” according to CNBC.
After bitcoin, the largest cryptocurrencies are Ethereum, Ripple, Bitcoin Cash and Litecoin.
“More than 40 percent of Americans who hadn't purchased cryptocurrencies said their reason was disinterest or believing there is no need to do so. Another 35 percent said the risk is too high, according to the survey,” reports CNBC. “To that point, 27 percent of people said it's too difficult to understand and another 18 percent said they believe it's a scam.”
For more information on the cryptocurrency, visit our Bitcoin category.
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