- 9.4% of French adults now hold crypto assets, closely following real estate funds at 10.7%.
- 2.8% of French adults own Nonfungible Tokens (NFTs), indicating the growing interest in diverse digital assets.
- There’s a notable knowledge gap in financial literacy among young investors (18-24), especially in basic investment strategies.
Cryptocurrencies have emerged as the second most favored asset class among French adults in a remarkable shift in investment preferences. This insight stems from a comprehensive survey initiated by the Organisation for Economic Co-operation and Development (OECD) and disseminated by France’s primary financial watchdog, the Autorité des Marchés Financiers.
The findings reveal that 9.4% of France’s adult population now holds crypto assets. This figure is just shy of the 10.7% who invest in the leading asset class, real estate funds. The digital realm’s appeal extends beyond traditional cryptocurrencies, with 2.8% of respondents owning nonfungible tokens (NFTs).
A distinct trend surfaces among the so-called “new investors” – individuals who embarked on their investment journey post-March 2020 amid the COVID-19 pandemic. Predominantly male (64%) and younger, with an average age of 36, these new entrants are significantly divergent from the traditional investor profile, typically aged 51. In this emerging group, a striking 54% are cryptocurrency holders.
However, the survey also casts light on the knowledge gap in financial literacy among these new investors, particularly those aged 18-24. This demographic showed a higher propensity for inaccuracies in basic investment strategy compared to their seasoned counterparts.
The methodology of the OECD’s survey was rigorous, involving 1,056 participants and complemented by 40 in-depth interviews aimed at understanding the needs and motivations of the respondents.
Moreover, these findings align with France’s strategic vision of becoming a leader in the digital economy within Europe. The local telecommunications giant Iliad recently invested 100 million euros ($106 million) to establish an AI research ‘excellence lab’ in Paris. Additionally, this month marked the inauguration of the pioneering Institute of Crypto-Assets, situated in the business district outside Paris.
This rush in cryptocurrency investment among the French population reflects a broader, global trend towards digital asset classes. It underscores the evolving landscape of investment preferences, where traditional assets like real estate funds are now contending with digital currencies and assets’ dynamic and rapidly growing domain.