Caroline Bowler

Australia’s premier home-grown cryptocurrency exchange, BTC Markets, has released its third Investor Study Report, revealing a dramatic increase in average initial deposits from sophisticated investors.

The report provides a comprehensive analysis of investment behaviours on the BTC Markets exchange from FY21 to FY24, segmented by demographics of its 362,000 clients, and includes insights from a survey of 1,290 Australian adults conducted by market researcher Protocol Theory.

The study revealed a substantial disparity in initial deposit inflows on the BTC Markets platform over the past year. Non-retail investors have seen their initial deposits grow by an impressive 189%, while retail investors experienced a decline of 15%. Additionally, Self-Managed Super Funds (SMSFs) and trusts also saw increases, with deposit growth rates of 50% and 12%, respectively.

BTC Markets CEO Caroline Bowler highlights a notable shift in the crypto space, emphasising the increasing role of established investors in shaping the future of digital assets.

“Our latest analysis reveals that trading volumes are now driven by more sophisticated investors, instead of the small retail investors that typified the early crypto boom,” Ms Bowler said.

“This resurgence among more traditional investors reflects increased confidence that the asset class and associated technologies align with their investment thesis. These experienced investors, known for their thorough due diligence, are favoring ‘buy and hold’ strategies over speculative trading,” she added.

A year of resilience and revival

In FY24, BTC Markets experienced a remarkable surge in year-on-year trading activity, following a broader market decline over the previous two years, with average trade volume increasing by 60% and trade value rising by 40%. Average daily orders also grew by a modest 15%, indicating that while investors are executing fewer transactions, they opted for larger trades.

Bitcoin (BTC) continued to lead as the top-traded cryptocurrency, while Ethereum (ETH) and XRP retained strong positions. The growing prominence of stablecoins like USDT and USDC, alongside the rise of Solana (SOL), underscores a shift in market dynamics and a broadening of investor interests.

Ms Bowler asserts that despite Bitcoin reaching an all-time high of A$111,440 on March 14, the market remains in its early recovery phase, contrary to some views that suggest the onset of a bull market.

“Although trading volumes have improved, they have still not yet matched the peaks of FY21. The approval of spot Bitcoin and Ethereum ETFs by US regulators led to growing institutional activity, but persistent inflation, rising interest rates, and market volatility have tempered this momentum.

“Moreover, the fourth Bitcoin halving event in April 2024, while symbolic, took place in a more mature market and resulted in a gradual price increase rather than a significant surge,” she added.

Female investors ‘closing the gap’

According to BTCM, gender disparities in the crypto space are narrowing. Female investors are now catching up to their male counterparts in portfolio values and trading consistency.

The report shows a continued flattening of gender lines in average portfolio sizes. Males had a 13% higher average portfolio size than women in FY21 and FY22. However, in FY23 and FY24, this gap reduced to -1.63% and -0.81%, respectively, indicating that females now hold slightly larger portfolios on the BTC Markets platform.

Further, while males traded 8.5 times and 10.6 times more frequently than females in FY21 and FY22, respectively, this disparity has narrowed over time, with males trading 4.6 times and 3.5 times more frequently in FY23 and FY24 respectively.

Ms Bowler said: “Despite market fluctuations, female investors have shown consistent engagement on our platform, taking a disciplined and cautious approach. They often start with smaller investments and gradually increase their commitment.

“This mirrors traditional investment behaviours, where women are historically seen as ‘risk-averse’ and less likely to invest. However, they are closing the investment gap faster than ever before,” she added.

Older investors remain ‘cautiously optimistic’

The report highlights that while 25-44 year-olds are the most active crypto traders, older investors (60+) stand out for their higher initial investments and largest portfolio sizes, due to greater financial stability and accumulated wealth.

Additionally, survey data shows that 44% of those without current cryptocurrency holdings are either considering or open to it in the future. Notably, about half of those aged 45-54 and one-third of those aged 55+ are interested in exploring cryptocurrency.

Furthermore, over one-third (36%) of Australians aged 35-64 believe cryptocurrencies provide a unique diversification opportunity. This belief is even stronger among experienced investors, with nearly half (46%) of those in the same age group who rate their investing knowledge as ‘Very High’ or ‘Extremely High’ supporting the idea.

“While younger investors dominate trading activity, older investors are increasingly engaging with cryptocurrency, albeit with a more cautious and research-driven approach. They prefer to conduct thorough due diligence, consult with professionals, and carefully analyse the market before making investment decisions,” said Ms Bowler.

Key trends shaping crypto’s future

Ms Bowler identifies three key trends that will shape the cryptocurrency industry in the coming years: the growing influence of traditional finance, the impact of the 2024 US presidential election, and the need for a supportive regulatory framework in Australia.

She strongly believes that while Australian investors are enthusiastically engaging with the crypto space, the absence of a supportive regulatory framework is clearly holding us back.

“Global financial giants like JP Morgan, Standard Chartered, Goldman Sachs, HSBC, Citi, Fidelity and Franklin Templeton are embracing blockchain technologies. Yet, Australia’s multi trillion-dollar asset management and superannuation industries remain detached from these conversations,” Ms Bowler said.

“Countries like the USA, Singapore, Thailand, the UAE, as well as the EU have advanced their regulatory frameworks to meet investor demand, but locally we have seen little progress under two Federal governments. We continue to wait and debate.

“We need to create regulations that both encourage innovation and protect consumers, we need to foster greater collaboration and education among stakeholders, and we need to ensure Australia’s place in the future of finance.

“We hope this report can spark meaningful conversations in the industry and beyond,” she concluded.

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These engagements provided a platform for an open exchange of issues, ideas, and perspectives, ensuring that the voices and concerns of DECA’s members were heard.

“As part of its commitment to being the leading body for Australia’s digital economy, DECA continues to foster bipartisan collaboration within the Australian political landscape,” said Amy-Rose Goodey, Managing Director of DECA.

“Our recent research, unveiled at Blockchain Week last month, confirmed that fit-for-purpose regulation is the single most pressing concern for industry participants. As a member-focused organisation, we are dedicated to listening to our members and providing unique opportunities to proactively engage in regulatory dialogue. These meetings were a testament to that commitment.

“We are pleased that our members welcomed the opportunity and that positive discussions took place,” Ms Goodey added.

Dr. Andrew Charlton MP, Federal Member for Parramatta, and Chair of Parliamentary Friends of Blockchain said: “Blockchain technology has the potential to transform Australia’s economy, adding up to $60 billion annually. Its ability to enhance transparency, trust, and efficiency across sectors like logistics, healthcare, and finance is unparalleled.

Dr. Charlton emphasised the need for a modern regulatory framework that creates a conducive environment for innovation, jobs, and investment while ensuring consumer protection.

“Australia’s strengths as a regional financial hub must be leveraged in the digital economy. Developing digital skills and attracting tech talent through strategic action and collaboration between government and industry is essential to unlocking the full potential of blockchain technology for Australia,” he further added.

However, Caroline Bowler, CEO of the leading home-grown cryptocurrency exchange BTC Markets, expressed concerns about the pace at which Australia is advancing on the legislative front compared to the rest of the world.

“Based on my recent travels to Southeast Asia, Europe, and the US this year, it is evident that financial services worldwide have progressed in the crypto and digital assets space, while we continue to play catch-up locally,” Ms. Bowler stated.

“As a home-grown exchange, we observe that for Australian businesses to develop and seize the opportunities present globally, we must look at offshore markets, thereby taking skills, intellectual property, and investment overseas.”

Government leaders in attendance acknowledged these concerns, recognising that such an outcome would be detrimental to the Australian economy. They were receptive to industry calls for prioritising digital financial services, balanced with the ongoing legislative agenda.

Jackson Zeng, CEO of cryptocurrency brokerage Caleb and Brown, endorsed The Treasury’s October 2023 proposal paper titled “Regulating Digital Asset Platforms,” which advocates for regulating Digital Asset Service Providers under the Australian Financial Services Licence (AFSL).

“Digital Asset Service Provider members unanimously agree that addressing custody risk remains the highest priority for millions of Australian consumers. The introduction of ‘minimum standards for holding assets’ and ‘additional standards for token holders’ addresses this primary concern and should be prioritised for parliamentary legislation,” said Mr. Zeng.​

Lisa Wade, CEO of DigitalX, the ASX-listed fund manager specialising in cryptocurrencies, shared her optimism following the recent engagements.

“These discussions gave me hope that the government is truly listening and recognises our vital role in the future Australian economy—and that the future of the economy is digital. I saw clearly that as an industry, we must collaborate with the government to overcome significant capacity hurdles.

“What was inspiring to me is that there is a pathway for partnership. I believe DECA can live up to its new name and drive the work forward by assisting the government in drafting the legislation we need,” Ms. Wade said.

A recent survey conducted by Protocol Theory and commissioned by DECA found that fit-for-purpose regulation was “extremely important” to 57% of those surveyed and “very important” to a further 31%. This underscores the critical need for Australia to advance its legislative framework to ensure the growth and sustainability of its digital economy.

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Caroline Bowler,

“ETH is now firmly on the path towards ETP status. Although already the second largest crypto asset, this will expand investor awareness of this asset and its extraordinary role within the blockchain ecosystem”, said Caroline Bowler, CEO of BTC Markets.

“For investors looking to gain exposure under a traditional investment structure, an ETP is a tailormade vehicle. Markets were buoyed by the BTC ETP and it is reasonable to expect similar for ETH on its US ETP listing.”

The profile of crypto is progressing towards the mainstream. There are ramifications for traditional financial services as the dynamics of crypto will change their structures forever. Equally, mainstream impacts will mature crypto at a pace, particularly in the areas of compliance and client protection. Each will improve the other.””

“Cryptocurrency and the blockchain economy are bigger than any one person or organisation. Its collective push towards innovating our world creates inevitable outcomes. The US ETP announcements are just one step towards that new world.”

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Caroline Bowler

Yesterday’s announcement regarding the settlement agreement between the Department of Justice (DOJ) and Binance, reminds everyone in the space about the fundamental ethos of Bitcoin and crypto.

Bitcoin was conceived to provide a decentralised, equitable, and transparent financial system, yet its inherent nature has also made it a target for bad actors seeking to exploit the system.

The actions taken today by the DOJ underscores the ongoing battle against nefarious activities, such as money laundering, within the crypto industry. The primary goal of money laundering is to integrate illicitly gained assets into the financial system, making it difficult for authorities to trace the funds back to their criminal origins.

While bad actors may seek to leverage the decentralised nature of cryptocurrencies for illicit purposes, true believers in blockchain technology are committed to cleaning up the space. The core principles of our industry are rooted in collaborating with regulators to ensure consumer protections, foster innovation, and ensure the long-term sustainability of the blockchain industry.

The commitment of BTC Markets persists in fostering a secure and compliant crypto environment that encourages responsible innovation, empowers individuals, and guards against illicit activities like money laundering. Such activities not only harm innocent individuals but also tarnish the industry’s reputation.

Yesterday’s news serves as a reminder of the ongoing efforts to ensure the integrity of the crypto space. BTC Markets stands alongside regulators and responsible industry participants to promote transparency, compliance, and ethical practices that underpin the future growth and longevity of the blockchain industry.

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This move recognises the significance of digital asset infrastructure for the future of Australia, and we look forward to working alongside the Treasury Department towards creation of a regulatory framework.

It also mirrors the calls of many of us in the industry who have been asking for proportional, appropriate regulation of our sector. We echo the position of the Treasury consultation paper in March of this year, which recognised that regulation needs to be centred on risk and remain technology neutral.

BTC Markets submitted feedback to both the cross-party Senate Committee on Australia as a Technology and Financial Centre and the recent Treasury consultation paper on licensing and custody requirements for the crypto industry.

The Treasury consultation paper in March 2022 spoke of regulating according to risk. It recognised that crypto assets are distinct in character compared to traditional financial products. The issues of trust and information asymmetry may be mitigated using blockchain technology. As a result, any regulations need to be applied based on risk, and considered technology neutral in design. Token mapping is the foundational work to achieve this risk-based objective.

The additional benefits of token mapping are many. It will provide greater clarity to crypto investors; aide companies in developing their own blockchain-based innovations; provide guidance to digital currency exchanges; as well as assist regulators in shaping an appropriate regulatory regime. It will also correctly position Australia in a leadership role globally on this issue.

In our 2020 submission to the Senate committee, BTC Markets stated that “Regulation sets the tone. It builds the culture, facilitates the flow of capital and manifesting of skills in our workforce. It is needed to construct the right safeguards, and demonstrate industry preparedness, in protecting all investor clients. It also provides surety as to the direction for investment and jobs growth.”

As the leading Australian cryptocurrency exchange, BTC Markets welcomes today’s announcement. We look forward to working closely with Treasury to keep innovation and consumer protections at the very heart of our industry.”

 By Caroline Bowler, CEO

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The partnership will enable BTC Markets customers to make direct debit, prepaid or credit card payments into the Cryptocurrency Exchange seamlessly, safely and securely delivering the same experience as making any other online purchases.

The partnership reflects a significant leap for BTC Markets customers who previously could only pay using bank transfer. The shift will enable more payment options, creating a world-class digital experience that mirrors that of an e-commerce check-out.

The partnership with Mastercard will see BTC Markets benefit from access to Mastercard’s broad range of payments and fraud technologies and capabilities to ensure BTC Markets are at the forefront of safe and secure payments.

BTC Markets CEO Caroline Bowler said: “As the cryptocurrency landscape continues to grow and evolve, customers are increasingly looking for faster and simpler ways to access cryptocurrency securely and efficiently. We’re excited to be partnering with Mastercard, who share our focus on stability, innovation and consumer protection, and enable us to offer our clients new ways to engage with this emerging digital asset class.”

Richard Wormald, Division President, Australasia for Mastercard said: “Mastercard is excited to partner with BTC Markets to enhance the cryptocurrency trading experiencing for consumers in Australia. The partnership will see BTC Markets leverage our technology to provide a smart, simple and safe way for consumers to top up their digital cryptocurrency wallets, delivering a frictionless e-commerce experience.”

This is BTC Markets’ third strategic partnership announcement in the last six months. In September 2021, it announced a banking relationship with Volt Bank to access their unique banking-as-a-service (BaaS) platform, followed by a trading arrangement with online broker SelfWealth in February 2022.

As a collaborative and innovative exchange, BTC Markets is on a mission to bring together forward-thinking partners who understand the opportunity in cryptocurrency.

“From BTC Markets’ point of view, it’s about understanding the needs of our Australian consumers seeking to access crypto safely and securely,” Ms Bowler added. “Together with our partners, we want to co-create an ecosystem for our clients – to complement their existing finance relationships in the banking, payments and investments space – all under one roof.

“From an industry perspective, we’re seeking to demonstrate how crypto can sit alongside traditional finance to seamlessly work together in a financially inclusive future,” she concluded.

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Anna Clive

Home-grown digital assets exchange, BTC Markets, has announced the appointment of Anna Clive as Chief Operating Officer to help fast-track growth of the business as the local market faces remarkable regulatory changes and appears ripe for disruption.

Ms. Clive brings extensive experience both as an executive and transformational leader with ASX listed and privately held companies across media, technology (SaaS), retail, finance, telecommunications, and resources industries.

Her most recent experience was with business marketing company Thryv Australia / Sensis, as Chief Operations Officer, where she established and transformed the Operations function post the merger of the White and Yellow Pages divisions into a high performing, innovative and collaborative organisation.

Prior to this, she spent a decade at Deloitte Consulting, as a leader in the Strategy & Operations Management Consulting practice.

Commenting on the announcement, Caroline Bowler, CEO of BTC Markets said: “We are delighted to welcome Anna to the team and couldn’t be happier with the timing of her appointment.

“At BTC Markets, we have witnessed remarkable growth in the business over the past year. With that, we have significantly increased the team size, which is testament to the monumental level of activity, both in the crypto industry and in our business.

“Anna is known for leading people and developing cultures that emphasise data driven decision making, innovation, collaboration, flexible and inclusive working environments, and inspires exceptional performance across the whole of the business.

“She has exceptional achievements under her belt, and we look forward to her support in executing the company’s strategy across the business as well as maintaining elevated levels of customer service,” Ms. Bowler added.

Ms. Clive is based in Melbourne and her role will oversee the day-to-day administrative and operational functions of the business, including product, marketing, sales, service, and corporate functions.

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David Raper and Garry Duursma join the digital asset exchange from senior roles at the ASX and Tyro Payments.

Commenting on the appointments, Caroline Bowler, CEO of BTC Markets said: “We are delighted to welcome both David and Garry to the Advisory Board.

“At BTC Markets, we have been at the forefront working with regulators to support the local cryptocurrency industry. The appointment of both these experienced gentlemen will only help us further in our mission to provide a better environment for crypto investors and businesses alike.

“Following the release of Senator Bragg’s report supporting monumental regulatory change to the Australian crypto space, David and Garry will play a vital role in guiding BTC Markets through the implementation phase.”

David has more than 25 years’ experience in the financial services industry, with the past 15 years as Executive General Manager – Trading Services, Data and Technology at the  ASX. He is a proven global leader in exchange and financial market infrastructure innovation and has worked in regulated environments throughout his career.

He joins the BTC Markets Advisory Board with an aim to bring his traditional finance experience to help BTC Markets build innovative financial infrastructure of the future in a regulated way. Previously, he held positions at J.P. Morgan, SFE Corporation and has advised on several boards such as Yieldbroker, ASX Refinitiv Charity Foundation Ltd and Mycelium.

Garry brings experience in payments innovation. He was previously Vice President Sales and Marketing at Tyro Payments Limited and Head of Market Development and Payments Innovation at Mastercard, Australia and New Zealand. He has also formerly held roles at Xinja, as well as WooliesX, Ingogo and Spotpass.

“Both David and Garry bring significant experience in delivering innovative strategies across sectors, managing risk and navigating regulatory change which will be key to our success during a historic period in the Australian cryptocurrency space,” Ms Bowler concluded.

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According to BTC Markets, there are gaps in Australian regulation relating to digital financial products and the exchanges who support them.

The technology and ideology that underlines Bitcoin and other cryptocurrencies has been difficult for traditional markets to accept. But large financial institutions are now developing a mature understanding of its fundamentals.

With Bitcoin prices reaching new record highs, recent media reports have called for the regulation of cryptocurrency, a move that BTC Markets supports passionately.

BTC Markets’ CEO, Caroline Bowler, said digital finance is growing rapidly and that our country needs to keep apace of the change, with legislation tailored to technological advances.

“Australia needs to prepare for the future of finance. We believe prioritising digital financial legislation will have a significant longer-term impact across our entire economy.

“With the COVID-19 pandemic accelerating the move to digital, technology needs to be viewed as a driver of future jobs and economic growth to ensure Australia remains globally competitive.

“As a nation, we are setting international standards for blockchain use. But we need to use this clear advantage to get on the front foot to prepare our economy for what is to come,” she added.

Other jurisdictions pulling ahead

According to Ms Bowler, other jurisdictions are successfully pulling ahead in regulating their cryptocurrency markets, which is driving local company founders to list their companies overseas.Hong Kong has initiated a licensing regime for digital currency exchanges, which includes the ability to list Security Token Offerings (STOs)^[1]. Since listing requirements may be less onerous than on traditional exchanges, it serves as a better capital raising model for young companies.

Singapore also requires cryptocurrency businesses to be licensed. This has allowed DBS Bank, part owned by the Singapore sovereign fund Temasek, to launch a full-service digital exchange that includes digital trading and custody, a frontrunner of the new industry standard.

The United States has moved forward with the introduction of the Crypto Currency Act 2020 in Congress; the licensing of crypto banks in Wyoming; and legislating for traditional banks to custody digital assets.

The European Commission (EC) is looking to adapt existing frameworks to regulate innovation ‘in’ rather than ‘out’ and proposed a pilot regime for market infrastructures based on distributed ledger technology (of which blockchain is one type).

“We have firsthand experience of private equity, venture capital firms and investment banks looking to float innovative Australian companies via STOs but are hamstrung by a lack of local market infrastructure, inhibited by a regulatory framework shaped for traditional markets.

“This approach locks out much needed capital raising for Australian innovators and entrepreneurs and closes the door for local investors to access good quality investment opportunities. With recent advances overseas, such companies are looking for opportunities elsewhere in Asia-Pacific.

“As an Australian exchange, the challenge lies in navigating the unclear and at times, outdated regulatory environment,” Ms Bowler said.

The opportunity for Australia

BTC Markets believes that Australia can follow its overseas counterparts, distilling their objectives and examples to the domestic context.

Digital trade in Australia is estimated to be worth $192bn in the domestic economy by 2030. Digital goods and services are our fourth largest export sector, according to the Department of Foreign Affairs and Trade.

BTC Markets is a small but fast-growing Australian business reflective of the sustained growth in digital assets and cryptocurrency markets.

“As a digital asset exchange, we would strongly welcome a bespoke regulatory regime – similar to that developed by the European Commission,” Ms Bowler said.

“We recognise the increasing focus from the government via forums such as the Senate Select Committee on FinTech and RegTech, the National Blockchain Roadmap and ongoing support from the ASIC Innovation Hub. Nonetheless, leadership needs to come from all stakeholders.

“We have reached the limit of where future economic demand meets existing financial regulation. As a home-grown Australian exchange, we are fully committed to supporting the growth of digital finance in Australia and would welcome any opportunity to work with regulators on this path to innovation,” she concluded.

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[1] A security token offering (STO) is a regulated initial public offering (IPO), issued using the speed and efficiency of blockchain technology.

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