Cryptocurrency on Track to Achieve Mainstream Asset Status within Five Years, 50% of Respondents Confident; reveals Mudrex Survey

Indians Embracing Crypto for Long-term Wealth Goals

 Key Findings 

• 80% of survey participants were young adults (20-35 years old)

• Around 63.06% of people aged 20-35 have chosen to invest in crypto assets, showing a strong interest among younger demographics.

• Approximately 58.5% of investors have diversified into both equities and crypto, while 50% foresee cryptocurrency becoming a  mainstream asset class within 5 years

• 45% of respondents have cryptocurrencies in their retirement portfolios

• Tier-1 cities lead in crypto adoption, with Delhi-NCR holding pole position, followed by Bengaluru, Mumbai, Hyderabad, Chennai, Kolkata, Pune, Lucknow, and Ahmedabad

16th April 2024, Bengaluru: Highlighting the dramatic shift of the investment landscape of India, Mudrex, a Y-Combinator-backed global crypto investment platform revealed the results of its survey titled ‘Investment Trends in FY 2023-24: The Indian Crypto Renaissance’, which engaged with 8,976 participants across the nation. The survey results paint an optimistic picture of crypto’s mainstream acceptance, with 50% of respondents envisioning cryptocurrencies as a mainstream asset class within the next five years. This surge is indicative of evolving investment preferences and changing attitudes toward digital assets. The data suggests a broader shift in the financial landscape and how different groups of investors perceive crypto as part of their portfolios.

The survey also highlights a burgeoning trend of integrating cryptocurrencies into long-term financial planning, with 45% of users including cryptocurrencies in their retirement plans, implying a growing acceptance of cryptocurrencies as a legitimate asset class for long-term wealth accumulation. This trend could reflect a belief that cryptocurrencies offer opportunities for substantial returns over the long term or a desire for portfolio diversification beyond traditional assets like stocks and bonds. 

Cryptocurrency’s accessibility across all income brackets is evident. The survey found a minimal gap among high-income, mid-income, and low-income crypto investors. Notably, even individuals earning less than INR 5 lakh annually are engaging in crypto investments, highlighting the increasing accessibility and adoption of cryptocurrency across an income bracket of 5 to 50 lakhs.

Additionally, the survey reveals that a staggering 80% of participants belong to the young adult demographic, aged between 20 and 35 years old, indicating a growing interest among the youth in cryptocurrency investments. This generational preference underscores a higher openness to innovative financial technologies and alternative investment avenues among younger investors. In contrast, as the age groups advance, the interest in crypto investments slightly diminishes, suggesting a more cautious approach from older investors. With most respondents hailing from the startup scene, it can be attributed to the startup ecosystem’s familiarity with risk-taking and advanced technology, making them more inclined to embrace emerging financial technologies. Additionally, people employed in startups exhibit the highest inclination towards crypto investments, leading with 56.91% of the share reflecting a culture of innovation and risk-taking prevalent in these sectors.

The data suggests that investors are not solely focusing on crypto; about 58.5% of respondents have investments in both equities (stocks and mutual funds) and crypto. This demonstrates an understanding of diversification and the role crypto plays as an alternative asset class within a balanced portfolio. Approximately 70% of respondents make their financial decisions independently, reflecting growing financial awareness and knowledge among the crypto-savvy population.

Commenting on the survey findings, Mr Edul Patel, CEO of Mudrex, a Global Crypto Investment Platform, stated, “The insights from the survey highlight a transformative period in the financial landscape of India. The increasing adoption of crypto across various demographics and income levels, paired with a shift towards diversified portfolios, marks a significant change in how Indians perceive and utilise digital assets. As these trends continue to evolve, the financial landscape in India is poised to adapt to new opportunities and challenges in the world of crypto investments.” 

The survey was conducted over a period of 6 months June 2023 – January 2024. According to the survey, Tier-1 cities, led by Delhi-NCR, (25%) emerge as hotspots for crypto adoption, followed by Bengaluru (16%) and Mumbai (9%), fueled by factors like robust digital infrastructure and evolving investment preferences.  

About Mudrex

Launched in 2018, Mudrex has the vision of making crypto accessible to the masses so that ordinary investors can benefit from the massive wave of wealth creation. Founded by Edul Patel, Alankar Saxena, Rohit Goyal, Prince Arora the Y-Combinator backed enterprise has established a robust investing platform that can be used by both newcomers and seasoned investors. The US-headquartered and Bengaluru-based fintech startup aims to be the largest asset management platform for crypto.