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- UAE residents plan to invest a lot in crypto in the coming year.
- As residents are bullish on crypto, the UAE authorities have unique policies driving adoption.
Residents in the United Arab Emirates (UAE) have shown increasing interest in crypto investments in 2024. Over 30% of these investors will reportedly increase their crypto holdings in 2025.
37% of UAE Investors to Increase Crypto Stake
Notably, the UAE saw an impressive $34 billion increase in crypto investments from 2023 to June 2024, up 42% from the previous year. Bitcoin played a key role in this surge, accounting for 19% of the market, while stablecoins like Tether dominated with 51%.
CNF reported that the UAE is rumored to have amassed $40 billion in Bitcoin holdings. While the claims are only hypothetical, they have further proven UAE’s strong commitment to the digital asset industry.
A recent investment app eToro survey revealed exciting plans among UAE retail investors for the coming year. The survey with 1,000 participants found that 37% of UAE retail investors plan to increase their crypto investments in 2025. The investors’ increasing interest demonstrates a growing confidence in digital assets as a key component of future financial strategies.
Over 30% of UAE investors plan to increase crypto investments in 2025
A survey by mobile investment app eToro found that 37% of UAE retail investors aim to boost their cryptocurrency investments in 2025, according to Cointelegraph. Among 1,000 investors, 40% plan to increase…
— CoinNess Global (@CoinnessGL) December 24, 2024
While crypto remains a popular choice among UAE investors, it is not the only area of interest. The survey found that 40% of UAE investors plan to diversify their portfolios into traditional assets, like stocks and bonds. Furthermore, 38% intend to invest in real estate, while 51% plan to grow savings or investments.
In contrast, 41% are focusing on better budget management. Many others, approximately 38%, are focusing on lifestyle changes like cutting back on expenses like food takeout. Furthermore, 32% consider side businesses or part-time work for extra income, while 28% explore career changes.
eToro’s regional manager, George Naddaf, highlighted that these resolutions reflect a forward-thinking mindset among UAE investors. UAE’s adaptability to technological development demonstrates how it is positioning itself to become the world’s leading crypto hub by 2025.
Crypto Expansion Initiatives in the UAE
Over the years, the UAE has strengthened its position as a global hub for Web3 and crypto innovation with several initiatives. CNF reported in October that the UAE introduced a new legal framework for governance, the DAO Association Regime (DARe).
The new initiative is anticipated to make it easier for DAOs to interact with the traditional financial system.
Also, the Dubai and Abu Dhabi governments have set policies and projects to establish their nation as a center of financial innovation.
Furthermore, UAE’s Central Bank has approved the launch of AE Coin, a regulated AED stablecoin backed by real assets. This action demonstrates the UAE’s determination to strengthen its position in the global digital economy per its Digital Government Strategy 2025.
More broadly, the crypto market is recovering from a two-day decline. The market capitalization has increased by 0.24% in the last 24 hours to $3.37 trillion. Bitcoin (BTC), the leading digital asset, rose 5.03% within the same time frame to trade at $97,863.
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