GraniteShares ETP : Retail share traders are increasingly focusing on investing in companies involved in the digital asset sector at the expense of investing directly in cryptocurrencies.
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Will Rhind, Founder and CEO at GraniteShares ETP
- One in three prefer to invest in companies involved in crypto and one in five hold shares in the sector
- More retail traders believe current crypto slump is an extinction event than believe it’s just a crypto winter
The slump in the value of digital assets and ongoing price volatility among major currencies including Bitcoin is driving regular share investors to buy individual stocks involved in the digital asset sector.
Around one in three (33%) regular share traders say they now prefer to hold individual stocks in crypto companies, the study by GraniteShares, which offers crypto-related ETPs covering Coinbase, MicroStrategy and Block (Square), found.
More than one in five (21%) of retail share traders say they own shares in companies operating in the digital asset sector but do not own any cryptocurrencies.
The research from GraniteShares, which offers sophisticated UK investors a suite of index ETPs tracking FAANG stocks and a suite of Short and Leveraged Single Stock Daily ETPs tracking some of the most popular companies in UK markets, found the collapse of FTX and other companies coupled with the slide in prices in the past year has shaken confidence in investing in cryptocurrencies.
Around 31% of retail share traders questioned believe the current crisis in the crypto sector is an extinction event compared with 27% who believe it is just another crypto winter which the sector will recover from. Around 42% were undecided.
Will Rhind, Founder and CEO at GraniteShares said: “The collapse in the total market capitalisation of cryptocurrencies from more than $3 trillion at its height to around $814 billion has been spectacular and is clearly having an impact on the views of retail investors.
“Many still see value in the sector and are investing in the stocks of individual companies such as Coinbase, which may be seen as a more attractive and perhaps secure way to invest in crypto. More than one in five own stakes in crypto companies.
“There is a growing belief that the current troubles in the crypto market could be an extinction event and certainly weaker companies are going out of business. Short and leveraged ETPs enhance the trading toolkit in such conditions by enabling sophisticated investors to magnify returns in falling as well as rising markets.”
Source: ETFWorld.co.uk
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