New crypto traders are combining their digital assets portfolio with other investments like forex, stocks, and commodities, according to global multi-asset investment platform eToro.
From all over the world, about 11 percent of crypto investors who have traded on the eToro platform since 2017 decided to diversify their investments. The same findings resonate with the GCC and Arab region. About 9 percent of crypto investors in the region diversified their investments, and out of the 9 percent, 2.7 percent invested in commodities.
During a recent interview, eToro’s Regional Manager, Middle East, George Naddaf, shed more light on cryptocurrency growth in the GCC region as well as important disruptions, major trends and lots more.
Crypto Trading in the GCC Region
Naddaf explained that the Middle East is a region of incredible diversity while answering a question on the acceptance of crypto trading in the region. He stated that the growing acceptance of blockchain in the region has made the region’s leaders become more interested in crypto assets.
Dubai is so invested in Blockchain technology that the Crown Prince of Dubai, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, has set out to have all government documents secured on blockchain by 2020.
Investors Can Now Diversify Their Portfolio
Naddaf admitted to the fact that cryptocurrency is a powerful tool that can motivate newcomers to explore other assets in the market extensively,
“As we have seen for eToro, the variety of assets available means that people may have come to the platform to initially trade crypto, but could then choose to diversify into other investment types – all in one place.”
He added that new investors now have a more solid understanding and experience of the crypto market by trading in virtual currencies. According to Naddaf:
“It’s enabled them to become familiar with the tools and knowledge needed to make their own investment choices, which can be applied to any asset class they might become interested in.”
Will Bitcoin Rise Above the $4,000 Mark?
Bitcoin price has reached the $4000 – $4200 mark on several occasions this year and sold off, Naddaf said. But if the price is to overcome this level, he continued, an important event or series of events will be needed to attract new ‘investors’ to buy into it.
Naddaf mentioned that some of these events include the acceptance of BTC by major retailers alongside scaling solutions like the Lightning Network, the approval of crypto ETP products by the SEC such as VanEck SolidX ETF and “regulatory approval of exchange tokens such as Bitcoin.”