Crypto ownership in Canada drops in 2023

• According to a survey by the Ontario Securities Commission (OSC) in partnership with Ipsos, 77% of Canadians regretted investing in crypto assets in 2023.
• The number of Canadians holding crypto assets shrank to 10% in 2023 compared to the year before, which was 13%.
• Despite the pessimism, 39% of respondents claimed their crypto portfolio to be profitable compared to an initial investment.

Traditionally, Canada has been one of the notable players, with a growing number of individuals exploring the opportunities presented by digital assets. However, recent trends suggest a shift in the landscape as crypto ownership appears to be slipping. However, according to a new study, the number dwindles at the year’s end. According to a survey by the Ontario Securities Commission (OSC) in partnership with Ipsos, 77% regretted investing in crypto assets in 2023.

This survey comes amid the revival of crypto interest, with the crypto ETF decision around the corner. The survey interviewed around 2360 Canadians to judge their take on the crypto environment. The Canadian government has generally been more welcoming towards cryptocurrencies, but no regulatory guidelines exist. This may be one of the reasons for the growing number of sceptical investors and businesses.

Fewer Canadians own crypto assets than a year ago

The silver lining in the gloom is that Canadians were more aware of the crypto assets than the year before. However, the number of Canadians holding crypto assets shrank to 10% in 2023 compared to the year earlier, which was 13%. Even from an optimistic point of view, fewer Canadians believe that crypto has a bright future. Only 34% of the surveyed thought that crypto would play a vital role in the future in 2023, compared to the year before.

Despite the pessimism, 39% of respondents claimed their crypto portfolio to be profitable compared to an initial investment, slightly less than in 2022 (46%). And the average value of such a portfolio rose dramatically from $52,975 last year to $82,998 this year. One common driving factor amongst the participants was that they viewed cryptos as a speculative investment. According to the survey, the number of those who bought crypto as a long-term investment dropped from 29% last year to 20% this year.

Implications for the Canadian Crypto Ecosystem

The slipping trend in crypto ownership in Canada raises essential questions about the future trajectory of the crypto ecosystem in the country. While short-term fluctuations are common in crypto, sustained shifts in ownership patterns may have broader implications.

A decline in crypto ownership could potentially slow down the pace of adoption and innovation within the Canadian crypto ecosystem. If individuals and businesses become more risk-averse, interest and investment in blockchain technology and related projects might be reduced.

The observed slip in crypto ownership emphasizes the need for regulatory clarity in Canada. Establishing a clear and comprehensive regulatory framework can instill confidence in investors, providing a solid foundation for the sustainable growth of the crypto market.

Conclusion

The recent slip in crypto ownership in Canada reflects the nuanced dynamics of the crypto market. Regulatory uncertainties, market volatility, and educational gaps have all played a role in shaping this trend. While the short-term impact on the Canadian crypto ecosystem is notable, it also presents an opportunity for stakeholders to address these challenges and build a more robust foundation for the future. As the crypto landscape continues to evolve, proactive regulation, education, and market stability measures will be essential in fostering a thriving and resilient crypto ecosystem in Canada.