Bakkt Study Finds Future Crypto Purchase Consideration Holds Steady Despite Recent Crypto Failures
December 13 2022 - 8:01AM
Business Wire
Study examines sentiment of crypto owners and
crypto curious following summer volatility and the collapse of
FTX
Bakkt Holdings Inc (NYSE: BKKT) (“Bakkt”), a digital asset
platform that unlocks crypto and drives loyalty to create
delightful, connected experiences for a broad range of clients,
today released findings from its “Bi-Annual U.S. Consumer Crypto
Sentiment Study” of more than 2,000 U.S. consumers who own crypto
or are interested in crypto, examining their interest in crypto
following the summer volatility, their preferred security features
and outlook for crypto’s role in the global financial system. An
additional short-term assessment of more than 1,000 consumers after
the collapse of FTX who own or are interested in crypto was also
fielded to understand the impact of the FTX collapse on initial
findings. Despite the recent FTX collapse, future purchase
consideration of crypto holds steady for both crypto owners and
crypto curious, with only a 7% decline in future consideration for
crypto owners and a surprising 2% increase for crypto curious.
Overall, almost half say their interest in purchasing crypto hasn’t
changed.
In the findings prior to the FTX collapse, the topic of
regulation was already a top concern following the volatility of
the market this past summer. 71% of crypto owners and 70% of crypto
curious said they are extremely or somewhat concerned with the
safety and regulation around purchasing crypto. Both crypto owners
and crypto curious selected “it’s your crypto, not the crypto
company’s” as the #1 most important safety and regulation measure.
Overall, most respondents, 92% of crypto owners and 78% of crypto
curious, predict that crypto will be more regulated in the future.
The data also finds that concerns around safety and regulation grow
as investment level increases.
“The results of the study confirm that cryptocurrency is
increasingly appealing and not significantly impacted by the recent
failure of FTX. We do not see signals of a market exit.” said Bakkt
CEO Gavin Michael. “Regulation and security come through as top
concerns and illustrate why Bakkt’s thoughtful approach to risk
aligns with crypto owners’ values and concerns.”
Awareness of the crypto news cycle is found to impact shifts in
sentiment. Following the FTX collapse, only 33% of crypto curious
stated they recalled reading or hearing about any recent crypto
events. With no crypto investments and low recall of recent events,
crypto curious purchase sentiment holds steady across testing
waves. Crypto owners naturally have higher recall of recent events,
at 52%, contributing to their dip in outlook sentiment. The data
also shows that those who recalled recent crypto events have
stronger concerns around crypto safety and regulation. At the same
time, the study revealed that 84% of respondents agree that crypto
is gaining popularity. Additionally, 68% also say that crypto is
the next advancement in modern finance. When tested post-FTX
collapse, agreeability with these sentiments all dipped by a mere
single digit percentage overall.
Key Additional Findings:
- Education Remains the Biggest Barrier: Education
continues to remain the biggest barrier to entry with 61% of
respondents stating they don’t understand it enough, 41% saying
they don’t know how to invest in crypto, and 38% saying they don’t
know what to do with it. Security and regulation concerns followed,
with 21% saying it’s too new and that they want to wait for more
adoption.
- Unfamiliarity with Terminology: Less than 50% of crypto
curious can accurately identify the relationship between “crypto”
and “bitcoin.” While most participants have heard of bitcoin (#1
coin by market cap), only a small percentage say they have heard of
the #2 and #3 largest coins by market cap, Ethereum and Tether
respectively. The inability to differentiate between terminology,
and lack of awareness of coins besides bitcoin suggest more
education needed for adoption.
- Banks and Crypto – A Trustworthy Partnership: 76% of the
crypto curious segment rate their primary bank or credit union as
“very trustworthy” or “somewhat trustworthy” for purchasing crypto,
compared to 46% that believe the same for crypto platforms. Almost
90% of crypto owners view their primary bank as trustworthy for
purchasing crypto, noteworthy because they have already purchased
it elsewhere. Almost 90% of crypto owners are open to earning
crypto instead of traditional points, and over half of crypto
curious are open to earning crypto. While most consumers prefer
cashback when earning, crypto owners are equally open to earning
crypto in addition to points than cashback.
- Loyalty as a Pathway for Crypto Payment Adoption: 51% of
crypto owners and 48% of crypto curious agree that crypto acquired
through redeeming loyalty points would make them more likely to use
crypto for payments, even more so than P2P crypto exchange.
Investing for the Long-Term
Of the total sample of mid-October crypto owner respondents,
over 60% primarily use crypto as a long-term asset, with almost 20%
using it as P2P crypto exchange or for payments. The study also
finds that the perception of crypto as a long-term investment
increases with age.
About the Survey
Commissioned by Bakkt and conducted via the insights automation
platform quantilope, the Wave 1 survey polled more than 2,000
consumers across the U.S. and was fielded mid-October 2022,
providing insight into how many individuals have begun to explore
and invest in cryptocurrency in the past six months, as well as
those who plan on doing so in the next six months. The Wave 2
survey polled more than 1,000 consumers across the U.S and was
fielded from November 21 to November 28, 2022, to add additional
context to how sentiments on crypto have changed post-FTX
collapse.
To learn more about this research, please click here.
About Bakkt(R)
Bakkt is a digital asset platform that unlocks crypto and drives
loyalty to create delightful, connected experiences for a broad
range of clients. Bakkt’s platform, available through partners,
amplifies consumer spending and bolsters loyalty programs, adding
value for all key stakeholders within the Bakkt payments and
digital assets ecosystem. Launched in 2018, Bakkt is headquartered
in Alpharetta, GA. For more information, visit:
https://www.bakkt.com/ | Twitter @Bakkt | LinkedIn
https://www.linkedin.com/company/bakkt/
Bakkt-C
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221213005453/en/
Lauren Post, VP – Communications Lauren.Post@bakkt.com
Bakkt (NYSE:BKKT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Bakkt (NYSE:BKKT)
Historical Stock Chart
From Apr 2023 to Apr 2024