The Number of Crypto Hodlers in Canada Drops, but Average Holdings Value Increases

In 2023, the number of cryptocurrency holders in Canada experienced a slight decline, but the average value of their holdings saw a significant increase. However, a survey conducted by the Ontario Securities Commission (OSC) revealed that 77% of respondents regretted investing in crypto assets.

The OSC recently published a report titled “Crypto Assets Survey 2023,” which was conducted in partnership with Ipsos at the end of May. The survey interviewed 2360 Canadians, selected to accurately represent the country’s population in terms of gender, age, and region.

The survey results reflect a general pessimism towards cryptocurrencies among the Canadian population, possibly influenced by the timing of the research. While the percentage of Canadians who could provide a basic definition of crypto rose from 51% in 2022 to 54% in 2023, only 34% of them believe that crypto “will play a key role in the future,” compared to 49% in 2022.

Decline in Canadian Crypto Holders

The survey revealed that fewer Canadians owned crypto assets in 2023 compared to the previous year, with 10% of respondents in 2023 compared to 13% in 2022. The majority of crypto holders were males aged 25-44 with a higher education diploma and a full-time job.

Despite the overall pessimism, 39% of respondents claimed that their crypto portfolio was profitable compared to their initial investment. This percentage is only slightly lower than the 46% reported in 2022. Additionally, the average value of these portfolios increased significantly from $52,975 in 2022 to $82,998 in 2023.

Reasons for Buying Crypto

The survey found that the most common reason for buying crypto remained stable, with the majority of respondents citing “speculative investment.” However, there was a decrease in the number of individuals who bought crypto as a “long-term investment,” dropping from 29% in 2022 to 20% in 2023.

The findings of the Canadian survey align with a similar study conducted in France by the Organisation for Economic Co-operation and Development (OECD). The French research revealed that 9.4% of the population held crypto assets, which is only slightly lower than the percentage of individuals holding the most popular type of investment asset, real estate funds.

While the survey results indicate a decrease in the number of crypto hodlers in Canada, it also highlights the growing average value of their holdings. The overall sentiment towards crypto assets remains mixed, with a majority of respondents expressing regret over their investment decisions. As the crypto market continues to evolve, it will be interesting to see how these sentiments change in the coming years.