Appetite for ETFs, crypto rises alongside investor confidence

New research from Syfe, a new digital investment platform, has found Australian investor confidence remains stable, new investors are entering the market and the demand for other asset classes has grown despite volatility.

The Syfe Investor Pulse 2022 showed 58 per cent of respondents were confident they will still achieve their financial goals, despite 40 per cent of these saying not within the timeframe initially planned.

Just over 16 per cent investors polled in the survey were interested in bulking up on more defensive assets, while 12 per cent planned to invest in more aggressive and high-risk assets.

The demand for cryptocurrency exposure remained solid, with 41 per cent of respondents already invested, 26 per cent feeling comfortable and 15 per cent feeling more confident investing in this asset class.

The research also showed the appetite for diversification had grown as Australian shares are set to decline, with the demand for international shares set to increase to 37 per cent, ETFs to 38 per cent and crypto to 34 per cent over the next one to five years.

“Syfe is excited to extend its proven digital investing platform to Australia,” General Manager and Country Head of Syfe Australia, Tim Wallace, said.

“While the prevailing wisdom is that the market is saturated and that economic indicators are dampening investor sentiment, the research results reinforce our belief that Australian investors are resilient and firmly focused on financial security.

“They are seeking to grow their knowledge and tap into diversified investment offerings like international shares and crypto in order to build for the longer-term.”

Syfe’s research found the retail investment landscape in Australia had undergone significant changes, with 74 per cent of respondents investing for ten years or less and 51 per cent entering the market in the last five years.

The poll, which surveyed over 1,000 Australians aged from 25 to 45 years in July 2022, revealed the top goals of respondents were to achieve financial security (39 per cent) and build long-term wealth (24 per cent).