Market Overview

SharesPost Mid-Year Crypto Survey: Investors Remain Cautiously Optimistic Despite Correction

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Despite a steep market correction in cryptocurrencies, a majority of
accredited and retail investors are planning to buy more digital
securities over the next 12 months, according to the Mid-Year
Cryptocurrency and Blockchain
survey by SharesPost, the leading
provider of liquidity solutions to the private growth asset class.

Bitcoin (BTC) and Ethereum (ETH) have declined about 48% since
SharesPost's inaugural crypto survey in January 2018. However, 59% of
the July survey respondents – a slightly lower percentage than in
January – say they will allocate more capital to digital currencies over
the next year.

"Based on our survey, crypto investors haven't lost faith and are
planning to buy more," said Rohit
Kulkarni
, Managing Director and Head of Research of SharesPost, Inc.
"Importantly, this survey indicates that this correction is separating
long-term believers from short-term day traders. Investors remain
bullish on Bitcoin and Ethereum over the next 18 months because they are
the leading digital currencies globally. Both enjoy relatively low
correlation to other asset classes and can be an ideal way for investors
to diversify a portfolio of stocks and bonds."

Among the findings from SharesPost's Mid-Year survey:

  • BTC is widely held among accredited and retail investors, while ETH
    and XRP (Ripple) ownership skews toward accredited investors.

    Since the correction, BTC has become the clear preference for
    accredited and retail investors. As a result, survey respondents say
    BTC is likely to perform better than ETH in the future. One reason for
    the diminished outlook for ETH is the lack of overwhelmingly
    successful Initial Coin Offerings (ICOs). ETH has been the digital
    currency of choice for most ICOs.
  • A growing number of companies are implementing blockchain
    technology.
    Thirty-two percent of accredited investors and 49% of
    retail investors say their employers are planning to roll out
    blockchain technology in the near future. The percentage of retail
    investors who say their employers are considering a blockchain
    implementation grew 12% over the past six months, more support for the
    continuing momentum for blockchain.
  • Cryptocurrencies and blockchain technology may take longer to go
    mainstream.
    In spite of the growing deployment of blockchain
    technology, accredited and retail investors have tempered their
    expectations about the widespread adoption of cryptocurrencies. The
    percentage of accredited investors who think crypto will go mainstream
    in 2020 dropped to 27% from 51% in July from earlier in the year.
    Among retail investors, it fell to 37% percent from 42% since the
    beginning of the year.

The SharesPost Mid-Year survey was conducted in July and included online
responses from 2,490 retail investors and 528 accredited investors.

For more information about cryptocurrencies and blockchain technology,
please see our most recent report, Decrypting
Blockchain: Unlocking The Internet Of Value
. To view a complete
list of SharesPost research reports, click
here
.

About SharesPost, Inc.

SharesPost is a FINRA-registered broker-dealer, SEC-registered
Alternative Trading System (ATS) and Registered Investment Advisor.
SharesPost helped launch the secondary market for private tech companies
in 2009 and has built the leading platform for secondary transactions
and digital securities. SharesPost provides the private tech asset class
with a suite of trading and lending solutions to facilitate shareholder
and option holder liquidity. With more than $4 billion in secondary
market transactions in the shares of more than 200 leading technology
companies, SharesPost provides the trading, research and online tools to
transact in the private market with confidence. For more information,
visit sharespost.com.

Any securities offered are offered by SharesPost Financial Corporation,
a member of FINRA/SIPC. SharesPost Financial Corporation and SP
Investments Management are wholly owned subsidiaries of SharesPost Inc.
Certain affiliates of these entities may act as principals in such
transactions.

Investing in private company securities is appropriate only for those
investors who can tolerate a high degree of risk and do not require a
liquid investment.

Cautionary Note Regarding Forward-Looking Statements

The matters described herein contain forward-looking statements. These
statements include, but are not limited to, statements about research on
late-stage, venture-backed companies. We caution that these statements
are not guarantees of future performance. Actual results may differ
materially from those expressed or implied in the forward-looking
statements. Forward-looking statements involve a number of risks,
uncertainties or other factors beyond SharesPost's control. These
factors include, but are not limited to, factors detailed in the white
paper. We undertake no obligation to release any revisions to any
forward-looking statements.

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