UK crypto traders are optimistic about major gains this year, with many believing a Trump presidency could fuel a market surge, according to new research from GraniteShares, a global issuer of Exchange Traded Products (ETPs).
The study found that nearly one in three (30%) UK retail traders expect returns of at least 30% from crypto trading in 2024, largely driven by the belief that a Trump administration would ease regulatory restrictions and boost the market.
An additional 37% anticipate returns of 10% or more, while 20% expect up to 10% in gains. Only 3% foresee no returns, and 10% were unsure.
More than half (56%) cited Trump’s potential impact on crypto markets as their main reason for optimism, while 51% pointed to growing confidence in the sector and 46% highlighted strong recent performance.
Looking back, around a quarter (26%) of crypto traders reported returns of 30% or more in 2023, with a further 37% achieving at least 10% in gains.
However, 7% admitted to losing money, while 6% either made no returns or were uncertain about their performance.
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Catarina Donat Marques, head of European retail strategy at GraniteShares, said: “The price of Bitcoin increased by around 125% in 2023 and broke the psychologically important $100,000 barrier, with the US presidential election playing a major role.
“Other factors, such as the launch of spot ETFs in the US and strong growth in crypto-related companies like MicroStrategy and Coinbase, have also contributed.”
GraniteShares’ leveraged ETPs have reflected this trend. The firm’s 3x Leverage Coinbase (COIN) ETP has returned 39.71% year to date, while its 3x Leverage MicroStrategy (MSTR) ETP has risen by 66.59%.
The research also found that nearly a third (32%) of retail traders now consider cryptocurrency and digital assets to be mainstream investments.
Additionally, 21% believe the market has become less volatile, with 26% crediting improved regulation following the 2022 crypto winter, which saw the market drop by 70%.
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