10 Crypto Facts for the New Year

1. Cryptocurrency markets operate 24/7/365, allowing users to access, move assets, and settle transactions in real time, anytime, anywhere.
2. As of December 16th, 2024, the global cryptocurrency market cap stands at $3.75 trillion, more than double the size of the private credit market, valued at $1.5 trillion.(1,2)
3. As of December 2024, approximately 40% of people worldwide have owned or bought cryptocurrencies.(3)
4. People aged 25-34 comprise 34% of the crypto owning population, making them the largest demographic among cryptocurrency owners.(4)
5. With 76% of crypto investors holding it, Bitcoin remains the most commonly owned cryptocurrency.(5)
6. Approximately 7 countries publicly disclose owning Bitcoin. These include the United States, China, Ukraine, Bhutan, UK, Venezuela, and El Salvador.(6)
7. As of December 2024, the U.S. government is estimated to hold 183,422 Bitcoin, valued at approximately $19 billion.(7)
8. Since January 1st, 2024, Bitcoin's price has surged by over 150%, driven by factors such as the launch of new spot Bitcoin ETFs and increased institutional adoption.(8)
9. Spot Bitcoin ETPs experienced impressive Day 1 inflows exceeding $4 billion, significantly outpacing the first spot gold products, which saw $1.2 billion in inflows during its first month of trading.(9)
10. As of December 16th, 2024, the net assets in Spot BTC ETPs in the U.S. surpassed the net assets of all gold ETPs in the U.S. – with gold having a 20-year head start.(10)

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WHAT ARE THE RISKS?

All investments involve risk, including the loss of principal.

Digital assets are subject to risks relating to immature and rapidly developing technology, security vulnerabilities of this technology, (such as theft, loss, or destruction of cryptographic keys), conflicting intellectual property claims, credit risk of digital asset exchanges, regulatory uncertainty, high volatility in their value/price, unclear acceptance by users and global marketplaces, and manipulation or fraud. Portfolio managers, service providers to the portfolios and other market participants increasingly depend on complex information technology and communications systems to conduct business functions. These systems are subject to a number of different threats or risks that could adversely affect the portfolio and their investors, despite the efforts of the portfolio managers and service providers to adopt technologies, processes and practices intended to mitigate these risks and protect the security of their computer systems, software, networks and other technology assets, as well as the confidentiality, integrity and availability of information belonging to the portfolios and their investors.

Any companies and/or case studies referenced herein are used solely for illustrative purposes; any investment may or may not be currently held by any portfolio advised by Franklin Templeton. The information provided is not a recommendation or individual investment advice for any particular security, strategy, or investment product and is not an indication of the trading intent of any Franklin Templeton managed portfolio.

Sources:

1. Source: “Global Crypto Market Cap”. CoinMarketCap. December 16, 2024.

2. Source: “Understanding Private Credit”. Morgan Stanley. June 20, 2024.

3. Source: Irene, Nellius. “40% of people worldwide own or have bought cryptocurrencies”. Cryptopolitan. December 17, 2024.

4. Source: “The State of Global Cryptocurrency Ownership in 2024.” Triple A. May 2024.

5. Source: “40+ Cryptocurrency Statistics in 2024.” Kraken. September 4, 2024.

6. Source: Lepcha, Mensholong. “Which Countries Hold the Most Bitcoin in 2024? 7 BTC-Backed Nations.” Techopedia. December 16, 2024.

7. Source: “U.S. Government Bitcoin Holdings.” Dune. December 16, 2024.

8. Source: Mulima, Monique & Shen, Muyao. “Bitcoin Sets Another All-Time High in Climb Toward $110,000.” YahooFinance. December 17, 2024.

9. Source: Kaul, Sandy. “Industry Advisory Services 2024 Survey: The Future of Investing.” Fall 2024.

10. Source: Gatheca, James. “Bitcoin Spot ETFs in US Surpass Gold ETFs in AUM, Cementing ‘Digital Gold’ Status.” CryptoNewsFlash. December 18, 2024.

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