Cryptocurrency ownership in the United Kingdom has witnessed a substantial increase, with the number of adults holding digital assets rising from five million to seven million. This surge coincides with significant global events, such as bitcoin's remarkable rally to $95,000, following the election of Donald Trump as the President of the United States. The Financial Conduct Authority (FCA) report indicates a sharp uptick in the number of individuals owning cryptocurrencies like bitcoin and ethereum, with ownership among UK adults reaching approximately 12% by August, up from 10% in June the previous year.
The FCA's latest report underscores a notable rise in the proportion of people holding substantial amounts in crypto assets, with those owning between £1,000 and £10,000 increasing from 20% to 36%. The average holding value has also seen an increase, now standing at £1,842 compared to £1,595 in 2022. However, alongside the growth in cryptocurrency ownership, concerns have been raised about misconceptions regarding investor protection. The report highlights that one in five crypto owners now mistakenly believe they would be eligible for compensation in case of issues, a figure that has doubled from one in ten in the previous year.
Additionally, the report reveals a concerning trend of individuals borrowing to finance their crypto investments, with 14% resorting to credit cards or other forms of borrowing, up from 6% in 2022. Moreover, more crypto owners are engaging in "staking," where they temporarily allocate their tokens to support blockchain networks in exchange for rewards. The demographic of crypto ownership in the UK skews towards males, younger adults, higher socioeconomic groups, and higher earners, with certain groups more likely to have misconceptions about investor protection and losses. The ongoing debate surrounding the future of cryptocurrencies intensifies, with enthusiasts foreseeing their integration into mainstream finance, while critics highlight concerns about illicit activities and speculative bubbles. President Trump's pledge to position the United States as the "crypto capital of the planet" has fueled optimism for a more favorable regulatory environment, contributing to the recent surge in bitcoin.