According to a recent survey, traditional asset classes have struggled to gain traction among women, while crypto has found success in attracting young women. In fact, these studies reinforce that women have become an increasingly important demographic in the blockchain industry.
The survey, which polled approximately 10,000 retail investors across 13 countries, including 1,000 from Australia, is part of eToro's latest Retail Investor Beat. In this two-part series, we will delve deeper into the survey data to analyse and break down the key findings, including the rising adoption trend in specific age groups and the factors contributing to the increasing popularity of digital assets among women. And given the recency of International Women’s Day, what better way to begin than with the latter?
Female investors lead the surge in crypto
The surge in cryptocurrency ownership last year was largely influenced by the increasing number of female investors who held digital assets, as their ownership rose by 5 percentage points from 29% in Q3 to 34%. In contrast, male ownership only increased by a mere 1 percentage point from 42% to 43%.
Notably, the statistics for Australian respondents provided exclusively to Stockhead reveal a more significant jump in ownership from 23% in Q3 to 41% by the end of Q4 2022. Also, according to Stockhead, crypto (61%) is already among the top three assets held by young Australian female investors aged 18-34, trailing right behind home equities (71%) and cash (82%).
This trend is similarly reflected in the Australian Independent Reserve Cryptocurrency Index (IRCI) 2022. According to the index, the percentage of women investing in digital assets has increased to 21.4%, up from 20% in 2021. On the other hand, the percentage of men investing in cryptocurrency has actually declined from 38% to 29%.
The increase in female ownership of cryptocurrencies is an interesting development in the cryptocurrency market. Historically, men have dominated the cryptocurrency space, and female participation has been limited. However, the rise in female ownership could indicate a shift in the demographic makeup of cryptocurrency investors.
Breaking down gender barriers
One reason driving these trends could possibly be the market environment. According to a 2022 report by BTC Markets, women generally have a more "structured trading strategy... with a smaller range of more focused positions." This can be considered more favourable within a volatile bearish market climate, explaining why growth in male ownership of cryptocurrencies seemed stagnant in comparison.
The growing interest and participation of female investors in the cryptocurrency market could also be attributed to various awareness campaigns and initiatives that aim to educate and empower women about digital assets, such as the #CryptoConfidence initiative launched by Zumo.
These initiatives are empowering more women to join the space, which is important in breaking down the perception of crypto being a man’s world; which is noted by Chloe White (Nation Blockchain Roadmap Lead at the Department of Industry, Science, Energy and Resources) as one of the biggest barriers-of-entry for women:
“We know that interest in Bitcoin initially emerged from communities that have traditionally had a high concentration of men, such as programmers and cryptographers [...] So, if you would like to see more women enter the space, start at home. Talk to your partners, friends, family and work colleagues. Bring them along to the meetups and show them the technology. The onus is on all of us – not just women – to be conscious about who we choose to share our knowledge with.”
From exclusion to inclusion
As the cryptocurrency industry continues to evolve, the increasing number of women participating in the space is a positive sign of progress. Breaking down the ideas of crypto as a male-exclusive space is hugely important in promoting diversity and fostering a welcoming environment for all investors.
Moreover, greater diversity in the cryptocurrency industry can lead to new perspectives and strategies, igniting progress and innovation. With women making up half of the world's population, their participation in the crypto space can bring fresh insights and ideas — ultimately moving the industry forward in brilliant new directions.
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