Australian cryptocurrency exchange BTC Markets has observed a significant uptick in older clients using its platform over the past financial year.
More older Australians are viewing crypto assets as viable investments according to the data provided by one of the country’s oldest and largest exchanges. In its annual Investor Report, BTC Markets — which started in 2013 — reported a 15% increase in the number of investors over 65. They are also the group making the largest deposits.
Baby Boomers, which are classified as those born between 1946 and 1964, now comprise 5% of the platform’s estimated 325,000 customer base.
BTC Markets CEO Caroline Bowler proclaimed that “young male traders have relinquished their monopoly on crypto,” as the boomer growth figure was the second-highest after the 18 to 24 age range.
More than a quarter of the exchange’s customers are investors over the age of 44 and they have more money to invest. The platform reported that the over 65 demographic had the highest average initial deposit of US $3,200 and an average crypto portfolio size of $3,700.
Bowler added that low interest rates are a key factor behind boomers looking towards alternative investments such as crypto assets, before adding:
“These Baby Boomers are often at a time in their lives when they have accumulated significant wealth and assets and have many years of experience investing in financial markets. They are not worried about allocating a small percentage of their portfolios to cryptocurrencies.”
Younger traders in the generation Z category aged 18 to 24 had far smaller initial deposits and portfolios, around a quarter of their senior counterparts.
The exchange surveyed 1,800 clients to ascertain their motives for investing in crypto. It discovered that 34% of those surveyed were seeking early retirement, 28% portfolio diversification, and 23% fear of missing out (FOMO).
Speaking to Bloomberg Crypto on Sept. 15, Bowler said that the firm has been looking at the Singaporean model of embracing the community as well as the regulatory challenges for the crypto industry.
She said that 28% of Australians said that one of the biggest challenges they face is the lack of regulation locally. This has a knock-on effect since financial advisors are not allowed to advise on crypto asset investing which would help investors mitigate risk.