Public Perception of Virtual Assets and Tokenized Money

27 The third survey revealed a notable shift in preferences for holding virtual assets among future holders. There is a growing inclination to use traditional brokerages, preferred by 24.04% of respondents in the third survey, which has increased by 6.45 percentage points from the previous surveys. Although software wallets were chosen by 26.92% of respondents, there is a significant decrease of 8.99 percentage points between the second and third surveys. This shift may be attributed to the increasing number of partnerships between brokerages and local licensed crypto exchanges in Hong Kong, which have made the process of buying and holding cryptocurrency more accessible and user-friendly compared to the complexities of setting up and managing software wallets. Overall, crypto exchanges remain the most popular place to hold virtual assets, with the majority of respondents across all three surveys favoring them. It is interesting to note the increasing number of crypto-ETFs issued in recent years provides another way to invest in virtual assets. Furthermore, as ETFs are traded on exchanges and many are issued by major brands (e.g., BlackRock’s IBIT), investor confidence increases. Whether crypto-ETFs which can be traded via existing channels have any impact on retail investors’ perception towards virtual assets is a topic worthwhile of continuous monitoring. The change in how individuals choose to acquire and hold virtual assets highlights the dynamic nature of this evolving landscape and the influence of regulatory and market developments on user preferences. As the virtual asset ecosystem continues to mature in Hong Kong, it is likely that we will see further changes in the public’s perception, interest, and preferences regarding virtual assets. Figure 25. Changes in Preferred Places to Hold Virtual Assets Crypto exchange Traditional brokerages (if they offer virtual assets) Hardware wallet Software wallet Others I don't know 1st survey 2nd survey 3rd survey 1st survey 2nd survey 3rd survey 1st survey 2nd survey 3rd survey 1st survey 2nd survey 3rd survey 1st survey 2nd survey 3rd survey 1st survey 2nd survey 3rd survey 61.13% 59.46% 63.29% 17.59% 18.53% 24.04% 18.98% 21.88% 17.67% 34.54% 35.91% 26.92% 0.56% 0.39% 0.21% 6.77% 7.21% 4.86% 0% 10% 40% 70% 20% 50% 30% 60%