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Cash is king, but cryptocurrencies are calling: Inside the modern retail investor’s portfolio
A new study from eToro reveals that retail investors are heavily invested in financial services stocks and liquid assets and are looking to cryptocurrency as a game-changer for the future. Cash continues to dominate, with 69% of investors holding it in their portfolios. When asked what assets they would like to add to their portfolios, respondents generally indicated that it would be digital tokens.
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Cash is held by 69% of respondents, while stocks are in second place, with 49%. Financial services stocks dominate retail portfolios, with 61% of investors surveyed holding positions in the sector. Technology and energy follow with 40% and 35% respectively. This trend reflects the recent outperformance of energy and technology stocks, as well as expectations that financial services will gain momentum in the coming months.
The visible preference for liquidity is likely driven by persistently high interest rates, with many large economies offering attractive risk-free savings rates of 5%. This too
leads to a notable interest in national bonds, held by 34% of respondents. One in four investors also focuses on commodities and FX products.
| Sector | % of global retail investors holding | Asset class | % of global retail investors holding |
| Financial services | 61% | Liquid assets | 69% |
| Technology | 40% | Locally listed stocks | 49% |
| Power | 35% | Domestic bonds | 34% |
| Real estate | 33% | Shares listed internationally | 31% |
| Communications | 32% | Commodities/FX | 26% |
“While markets continued to deliver for investors into 2024, the widespread availability of highly attractive savings rates means cash will remain the dominant asset class among global retail investors, at least for a few more months.” eToro analyst Sam North commented on the results.
Technology and cryptocurrencies seen as the future
Looking ahead, retail investors see technology and cryptocurrency as the most promising sectors for future investments. 18% of respondents plan to increase their technology investments, while 15% consider cryptocurrencies their top priority in the future.
This contrasts with another eToro survey from a few months agoin which one in four respondents suggested they were moving away from the big tech giants, selling their shares and reducing exposure.
The study also revealed significant regional differences in investment intentions. Investors in the UK and US are more focused on liquid assets, with 25% and 19% respectively prioritizing this asset class. In contrast, German and Spanish investors are more optimistic about the cryptocurrency, ranking it as their top investment priority.
| Village | Cryptocurrency | Liquid assets | Locally listed stocks | Shares listed internationally | Merci |
| UK | 11% | 25% | 8% | 10% | 6% |
| WE | 12% | 19% | 16% | 3% | 8% |
| Spain | 20% | 11% | 12% | 9% | 8% |
| France | 10% | 22% | 12% | 6% | 7% |
| Germany | 16% | 9% | 13% | 13% | 12% |
| Italy | 12% | 10% | 10% | 9% | 9% |
| Australia | 12% | 14% | 20% | 8% | 10% |
| Holland | 16% | 3% | 14% | 11% | 12% |
These divergent trends align with different cryptocurrency ownership rates across countries. In Spain and Germany, 38% and 32% of retail investors hold cryptocurrencies, compared to 25% in the UK and 27% in the US.
With central banks starting to cut interest rates, with the European Central Bank recently leading the way, the investment landscape could change. North suggests that this could tip the balance “more in favor actions and other asset classes such as real estate” in the coming months.
The Retail Investor Beat (RIB) survey, conducted by trading platform eToro, provides insights into the investment preferences of 10,000 retail investors across 12 countries.
Last week, the popular retail trading platform has renewed its sports sponsorship with the Czech football club SK Slavia Prague. Thanks to the renewal of the agreement, the eToro logo will be present on the front of the players’ match shirts for the fourth consecutive season.
A new study from eToro reveals that retail investors are heavily invested in financial services stocks and liquid assets and are looking to cryptocurrency as a game-changer for the future. Cash continues to dominate, with 69% of investors holding it in their portfolios. When asked what assets they would like to add to their portfolios, respondents generally indicated that it would be digital tokens.
Cash is held by 69% of respondents, while stocks are a close second at 49%. Financial services stocks dominate retail portfolios, with 61% of investors surveyed holding positions in the sector. Technology and energy follow with 40% and 35%, respectively. This trend reflects the recent outperformance of energy and technology stocks, as well as expectations that financial services will gain momentum in the coming months.
Dedicated Forex cloud solutions with stable and fast cross-border connections capable of high-demand scenarios. Alibaba Cloud helps Forex traders trade securely and globally. Click to learn more!
The visible preference for liquidity is likely driven by persistently high interest rates, with many large economies offering attractive risk-free savings rates of 5%. This also
leads to the significant interest in domestic bonds, held by 34% of respondents. One in four investors also focuses on commodities and FX products.
| Sector | % of global retail investors holding | Asset class | % of global retail investors holding |
| Financial services | 61% | Liquid assets | 69% |
| Technology | 40% | Locally listed stocks | 49% |
| Power | 35% | Domestic bonds | 34% |
| Real estate | 33% | Shares listed internationally | 31% |
| Communications | 32% | Commodities/FX | 26% |
“Although markets continued to perform for investors in 2024, the widespread availability of very attractive savings rates means that cash will remain the dominant asset class among global retail investors, at least for a few more months,” eToro analyst Sam North commented on the results.
Technology and cryptocurrencies seen as the future
Looking ahead, retail investors see technology and cryptocurrency as the most promising sectors for future investments. 18% of respondents plan to increase their technology investments, while 15% consider cryptocurrencies their top priority in the future.
This contrasts with another eToro survey from a few months agoin which one in four respondents said they wanted to move away from the big tech giants, selling their shares and reducing exposure.
The study also revealed significant regional differences in investment intentions. Investors in the UK and US are more focused on liquid assets, with 25% and 19% respectively prioritizing this asset class. In contrast, German and Spanish investors are more optimistic about the cryptocurrency, ranking it as their top investment priority.
| Village | Cryptocurrency | Liquid assets | Locally listed stocks | Shares listed internationally | Merci |
| UK | 11% | 25% | 8% | 10% | 6% |
| WE | 12% | 19% | 16% | 3% | 8% |
| Spain | 20% | 11% | 12% | 9% | 8% |
| France | 10% | 22% | 12% | 6% | 7% |
| Germany | 16% | 9% | 13% | 13% | 12% |
| Italy | 12% | 10% | 10% | 9% | 9% |
| Australia | 12% | 14% | 20% | 8% | 10% |
| Holland | 16% | 3% | 14% | 11% | 12% |
These divergent trends align with different cryptocurrency ownership rates across countries. In Spain and Germany, 38% and 32% of retail investors hold cryptocurrencies, compared to 25% in the UK and 27% in the US.
As central banks begin cutting interest rates, with the European Central Bank recently leading the way, the investment landscape may be changing. North suggests this could tip the scales “more in favor actions and other asset classes such as real estate” in the coming months.
The Retail Investor Beat (RIB) survey, conducted by trading platform eToro, provides insights into the investment preferences of 10,000 retail investors across 12 countries.
Last week, the popular retail trading platform has renewed its sports sponsorship with the Czech football club SK Slavia PragueThanks to the renewal of the agreement, the eToro logo will be present on the front of the players’ jerseys for the fourth consecutive season.