US investors are not considering buying crypto as much as they used to, as risk-taking behavior has dropped, according to a study from the Financial Industry Regulatory Authority.
The percentage of crypto investors was unchanged between 2021 and 2024 at 27%, but the number of investors considering either purchasing more or buying for the first time dropped to 26% in 2024 from 33% in 2021, FINRA reported on Thursday.
The industry regulator found that those with “high levels of investment risk” dropped four percentage points to 8% between 2021 and 2024. The biggest drop was among investors under 35, which shaved nine percentage points to 15%.
Investment into crypto typically spikes during periods of high optimism in the wider macroeconomic environment, but uncertainty over interest rates, inflation, and the economy has likely seen investors turn to perceived safer assets.
Crypto flagged as risky but key tool for financial goals
FINRA’s study was conducted between July and December 2024 with 2,861 US investors and a state-by-state online survey of 25,539 adults. It found 66% of respondents flagged crypto as a risky investment, up from 58% in 2021.
However, a third of investors responded that they believed they needed to take big risks to reach their financial goals, which grew to 50% of respondents for those aged 35 and under.
Around 13% of investors, including nearly one-third of individuals under 25, also reported purchasing meme stocks and other viral investments.
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Pace of new investors cools
The pace of investors entering markets has also declined compared to 2021. Only 8% of investors reported they had entered the market in the last two years to 2024, compared to 21% in 2021.
“The surge of younger investors who entered the market early in the pandemic, as reported in the 2021 NFCS, reversed direction as the pandemic ended, bringing the share of US adults under 35 who invest back down to the 2018 level,” FINRA noted.
Overall, FINRA found the results show a “modest trend toward more cautious attitudes and behaviors” relative to the 2021 survey.
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