Key Takeaways
- • An EY-Parthenon survey of more than 1,000 retail investors found 64% already invest in digital assets or related products, and 69% plan to increase their digital asset investments over the next two to three years.
- • 72% of retail investors who hold digital assets consider them a key component of their wealth-building strategy, with 83% of accredited investors holding that view.
- • 57% of investors prefer gaining digital asset exposure through registered vehicles such as ETPs, citing consumer and regulatory protections (58%), and 71% have or plan to seek crypto advice from a financial advisor (83% among accredited investors).
- • 69% of accredited investors have used digital assets for payments at least once in the past 12 months, versus 28% of non-accredited investors, and 88% plan to invest in tokenized assets by 2027.
Summary
According to EY-Parthenon's third annual global retail survey, conducted in March 2024 among a mix of accredited and non-accredited investors shortly after the approval of spot bitcoin exchange-traded products (ETPs), 64% of retail investors already invest in digital assets or related products, and 69% plan to increase those allocations over the next two to three years. The survey frames digital assets as a core element of broader wealth strategy rather than a speculative side position, with 72% of current holders describing them as a key component of wealth building.
Retail demand is shifting from direct spot ownership toward regulated and intermediated access. Per the survey, 57% of investors prefer registered vehicles, citing consumer and regulatory protections (58%), the ability to view digital assets within the same portfolio as other holdings (54%), and trust in issuing asset managers (44%). Enthusiasm is markedly higher among accredited investors, 67% of whom favor registered vehicles versus 39% of non-accredited investors. Around 40% plan to seek mutual funds, ETPs, and trusts with digital asset exposure, and EY notes that several ether ETPs were approved in May 2024, after the survey was fielded.
Use cases are also broadening beyond buy-and-hold. Investors reported increases in active usage, including a 16% rise in staking, a 17% rise in DeFi participation, and a 6% rise in payments. Demand for broader services has grown since 2022: desire for wider coin selection rose from 68% to 79%, interest in lending products from 32% to 52%, and interest in staking from 25% to 43%. Investors also show an appetite for tokenized assets, with 88% planning to invest in them by 2027. EY highlights tokenization's potential to lower minimums and improve liquidity for alternatives such as hedge funds, real estate, and commodities, noting that 49% of accredited investors wish they had better access to alternatives.
EY identifies an unmet demand for traditional finance (TradFi) advice. Seventy-one percent of investors have or plan to seek advice from a financial advisor on crypto, rising to 83% among accredited investors, and 85% want their wealth and estate planning advisors to incorporate crypto into an overall strategy. For wealth managers and banks, EY sees an opportunity to increase share of wallet; for crypto-native firms, it sees room to launch advisory offerings. Payments usage is concentrated among accredited investors, with 69% having used digital assets for payments in the past year, and the most-used stablecoins being PYUSD (47%) and USDC (38%). EY also reports that 53% of retail investors would consider receiving payroll in digital assets.
Retail demand is shifting from direct spot ownership toward regulated and intermediated access. Per the survey, 57% of investors prefer registered vehicles, citing consumer and regulatory protections (58%), the ability to view digital assets within the same portfolio as other holdings (54%), and trust in issuing asset managers (44%). Enthusiasm is markedly higher among accredited investors, 67% of whom favor registered vehicles versus 39% of non-accredited investors. Around 40% plan to seek mutual funds, ETPs, and trusts with digital asset exposure, and EY notes that several ether ETPs were approved in May 2024, after the survey was fielded.
Use cases are also broadening beyond buy-and-hold. Investors reported increases in active usage, including a 16% rise in staking, a 17% rise in DeFi participation, and a 6% rise in payments. Demand for broader services has grown since 2022: desire for wider coin selection rose from 68% to 79%, interest in lending products from 32% to 52%, and interest in staking from 25% to 43%. Investors also show an appetite for tokenized assets, with 88% planning to invest in them by 2027. EY highlights tokenization's potential to lower minimums and improve liquidity for alternatives such as hedge funds, real estate, and commodities, noting that 49% of accredited investors wish they had better access to alternatives.
EY identifies an unmet demand for traditional finance (TradFi) advice. Seventy-one percent of investors have or plan to seek advice from a financial advisor on crypto, rising to 83% among accredited investors, and 85% want their wealth and estate planning advisors to incorporate crypto into an overall strategy. For wealth managers and banks, EY sees an opportunity to increase share of wallet; for crypto-native firms, it sees room to launch advisory offerings. Payments usage is concentrated among accredited investors, with 69% having used digital assets for payments in the past year, and the most-used stablecoins being PYUSD (47%) and USDC (38%). EY also reports that 53% of retail investors would consider receiving payroll in digital assets.
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