Keeping money in a piggy bank won't grow it (via Pixabay).
Keeping money in a piggy bank won't grow it (via Pixabay).
Cryptocurrencies

Growing interest in tokenized assets: eToro survey

Fractional ownership of assets like art and real estate is becoming more attractive as the recession worries grow

By  / September 11, 2019 /

With the threat of a recession looming larger, online traders of all ages are growing more interested in investing in fractional ownership of assets, a survey found.

In a survey of 1,000 investors who trade online, more than 80% would be interested in owning blockchain-based security tokens offering fractional ownership in small businesses and real estate, and nearly 70% percent would be interested in investing in music rights, according to social trading and brokerage company eToro.

“As global markets experience heightened volatility and as geopolitical tensions escalate, investors are seeking stability outside of the traditional stock market,” said Guy Hirsch, managing director of eToro U.S. “Investors across all demographics are looking to empower themselves financially by diversifying their portfolio with new asset classes and exploring novel forms of ownership.”

The survey, performed for eToro by Provoke Insights, also found that 55% of the respondents said they would sell a portion of their stock portfolio to fund these digital asset investments.

Provoke Insights surveyed 1,000 U.S. online investors in late July who said that they trade online and that they either invest in stocks, cryptocurrency, or ETF indexes, or plan to within the next 6 months, eToro said. The respondents were ages 20 to 65, and matched the U.S. Census norms for age and geographic location.

Two thirds of those surveyed believe a recession is coming soon. 

Of the group most concerned about a recession, 92% said they were “very interested” in fractional assets like high-end art, landmark buildings, and private start-ups. The art market in particular has expressed interest in tokenizing works.

“We believe that if a recession were to occur, we’d see shrinking stock portfolios and growth in other asset classes like crypto, as well as new fractional ownership models,” Hirsch said. “Historically, these investment opportunities have been limited to high net worth and institutional investors, but innovation is unlocking these opportunities for everyday investors and clearly, these results indicate that the demand is there.”

Last October, the St. Regis Aspen Resort was sold using these security tokens. 

Millennials were the group most likely to invest in cryptoassets, with 40% expressing interest, while the younger Generation Z respondents were more interested in real estate. Generation X favored commodities, with 38% interested. 

In an April 8 eToro survey performed by the same research company on a similar audience, 71% of Millennials—and 59% of all investors—said they would invest in cryptocurrencies if they were offered by traditional financial institutions. Nearly three quarters of cryptocurrency investors and 45% of investors who did not currently invest in virtual currencies expressed an interest in putting digital assets into their 401k retirement saving plan portfolios. 

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Leo Jakobson, Modern Consensus editor-in-chief, is a New York-based journalist who has traveled the world writing about incentive travel. He has also covered consumer and employee engagement, small business, the East Coast side of the Internet boom and bust, and New York City crime, nightlife, and politics. Disclosure: Jakobson has put some 401k money into Grayscale Bitcoin Trust.