Nearly 90% of cryptocurrency investors surveyed say they weren’t scared away by May’s brutal selloff and are planning to buy more

A woman standing in an office is holding a bitcoin in her hand.
  • 87% of respondents in a survey by cryptocurrency-asset broker Voyager Digital plan to buy more digital currencies in upcoming months.
  • Voyager said the survey indicates crypto buyers will take advantage of the recent market selloff led by bitcoin.
  • Crypto buyers are also bullish on cardano and optimistic about a bitcoin ETF this year in the US.
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The recent selloff that wiped out more than 20% of the cryptocurrency market’s valuation appears to have emboldened buyers to invest even more in digital currencies, according to a survey conducted by cryptocurrency-asset broker Voyager Digital.

87% of respondents in the company’s second-quarter retail investor sentiment survey said they plan to increase their crypto holdings over the next quarter. The survey captured responses from 3,671 participants at the end of May, during which bitcoin led a plunge in prices throughout the market.

The survey also showed an average of 7 out of 10 investors holding bullish sentiment for bitcoin price over the next three months.

Threats of bitcoin mining and trading crackdowns in China, taxation efforts on cryptocurrency transactions in the US and Tesla’s decision to stop taking bitcoin as payment for its electric vehicles stoked a 47% slide in bitcoin’s price during May, driving it to a low of $30,681.50 from $57,750.18 at the start of the month.

“It’s encouraging that investors remain bullish following the recent market correction,” said Steve Ehrlich, Voyager’s CEO, in a statement. “The fact that the vast majority of our large sample size of investors are more confident in the future of cryptocurrency shows how people see May’s volatility in many crypto-assets as a buying opportunity.”

Bitcoin’s market capitalization has dropped almost 30% to $766.6 billion since the start of May through mid-Monday, losing grip of the $1 trillion market-cap level.

The cryptocurrency’s market capitalization has been dragged down by roughly 21% from the start of May through midday Monday, standing at $1.74 trillion from $2.21 trillion. But the market cap has recovered somewhat after falling to $1.3 trillion in late May, aided by bitcoin’s price rising back above $40,000.

The survey showed 39% of respondents predict bitcoin’s price will move up to between $56,000 to $70,000 by the end of the third quarter, while 28% foresee the price between $41,000 to $55,000.

Bitcoin jumped above $40,000 on Monday after Elon Musk tweeted that Tesla would accept bitcoin payments again once mining can be done using cleaner energy.

Looking at so-called altcoins, Voyager said investors are most bullish on cardano, at 55%, followed by dogecoin at 11%. Meanwhile, more than nine of 10 investors expect the Securities and Exchange Commission to approve the US’s first bitcoin ETF this year.

Voyager said its results were based on a sample set of more than 1.6 million verified users in an anonymous online survey. Respondents were chosen based on a “highly active trader status” on the platform, with those users executing between 50 to 100 trades over a 30-day period.

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The world’s largest crypto fund manager is offering new trusts that invest in 5 different cryptocurrencies

Photo illustration of visual representations of digital cryptocurrencies
  • Grayscale Investments is offering new trusts that invest in five different cryptocurrencies.
  • The new trusts will invest in Basic Attention and Decentraland tokens, Chainlink, Filecoin, and Livepeer.
  • Investor demand for digital currencies has never been higher, Grayscale CEO Michael Sonnenshein said.
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Digital currency asset manager Grayscale Investments announced Wednesday that it is offering five new investment trusts, bringing its single-asset lineup to 13.

The new trusts are launching into fairly niche segments of the crypto space, with three investing in Chainlink, Filecoin, and Livepeer, which are blockchain-based digital payment systems. One will invest in Ethereum-based Basic Attention tokens, while the fifth will hold coins in the virtual reality platform Decentraland. These trusts are among the first of their kind to solely invest in the digital currencies underlying each investment product.

“Digital currencies have reached an inflection point,” Grayscale CEO Michael Sonnenshein said in a statement. “Investor demand has never been higher, and every day we’re seeing new entrants to what has surely become a bona fide asset class.”

Decentraland is an Ethereum-based blockchain platform where users can operate VR applications.

Grayscale said all five trusts are open for subscription by eligible individual and institutional accredited investors. The decision to launch them was based on assessment of investor demand and the integrity of each cryptocurrency, Sonnenshein told Bloomberg in an interview. The asset manager’s biggest product is still its $34 billion Grayscale Bitcoin Trust.

The new cryptocurrencies it has chosen have much smaller market values in comparison to bitcoin. Basic Attention tokens are known to track consumers’ time and attention on websites, with the goal of understanding how to efficiently distribute advertising money.

Chainlink runs on the Ethereum blockchain, with a technology that enables delivery of price feeds into decentralized finance applications. Filecoin is a storage service provider that enables anyone to rent spare storage space on their computer, creating a huge source of data storage.

Livepeer is a decentralized video-streaming network for those who wish to add live or in-demand video to their networks. Meanwhile, Decentraland tokens can be used to buy up virtual plots of land and goods and services within its virtual-reality space.

Grayscale said it plans to continue a tradition of creating “novel pathways” for investors to access the opportunities that digital currencies may offer.

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