Crypto retail traders in the UK are banking on President Trump to help deliver major gains on their holdings in the year ahead, new research from ETF fund manager GraniteShares shows.
Nearly one in three (30%) expect substantial gains of at least 30% from crypto trading this year with the expectation that the Trump administration will boost the crypto market and remove regulatory restrictions, the main reason for their confidence.
A further 37% are expecting returns of 10% or more from their trading this year while one in five (20%) expect to see returns of up to 10%. Just 3% expect to see no returns from their trading over the next 12 months while 10% were unable to predict returns.
Trump administration is driving the crypto bulls
More than half (56%) say their main reason for optimism is the impact of the Trump administration on crypto markets while 51% say confidence in the sector as a whole has improved and 46% point to the recent strong performance of crypto investments.
Crypto traders themselves can point to recent strong performance – around a quarter (26%) say they achieved returns of 30% or more last year with a further 37% achieving gains of 10% or more and 24% making up to 10% in returns on their trading. However 7% admitted to losing money last year and a further 6% made nothing or did not know what their returns were.
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Catarina Donat Marques , Head of European Retail Strategy at GraniteShares, said:
“The price of Bitcoin increased by around 125% last year and broke the psychologically important $100,000 barrier with the US Presidential election result, a major factor in the rise. It is not the only reason for the growing interest in crypto trading, with the launch of spot ETFs in the United States at the start of last year also adding to momentum. Similarly crypto-related companies such as MicroStrategy and Coinbase have seen strong growth.”
GraniteShares offers ETPs providing long and short leveraged exposures to such stocks. They are designed for short-term investment horizons but can also be held profitably over longer periods, where the compounding effect of the daily leverage can be beneficial if there is a clear trend.
GraniteShares 3xLeverage Coinbase (COIN) ETP has returned around 39.71% year to data while its 3x Leverage MicroStrategy (MSTR) ETP has returned around 66.59% year to date.
GraniteShares research found nearly a third (32%) of retail traders believe cryptocurrency and digital assets in general are now mainstream investments while a fifth (21%) believe the market is now less volatile. Part of that may be down to improved regulation – 26% say the sector has cleaned up since the last crypto winter in 2022 which saw the market drop around 70% in value.
