Cryptocurrency traders are more charitable

When you think of the average cryptocurrency investor, images of someone who wants to get rich quickly may come to mind. But a new study by Fidelity Charitable reveals an interesting insight into the average cryptocurrency investor: They are markedly more charitable than the average person who invests in traditional assets, such as stocks and bonds.

Fidelity Charitable found that 45% of cryptocurrency investors donated $1,000 or more to charity in 2020. That’s compared to only 33% of the total investor population. The study also looked at how they donated to charity. While the stats above are for fiat currency (USD) donations, Fidelity Charitable also looked at those who donated cryptocurrencies to charity. Of those donating cryptocurrencies to charity, 67% said it was because they “wanted to do something good with my cryptocurrency,” while 56% said it was because their “cryptocurrency appreciated significantly.”

“As investors—particularly millennials—combine their interest in digital currency with their charitable values, digital assets have the potential to become a significant source of funding for philanthropy,” said Tony Oommen, Fidelity Charitable’s vice president and charitable planning consultant, in a statement. “Donors have already contributed $158 million in cryptocurrency assets to their donor-advised funds at Fidelity Charitable this year, a 464% increase from 2020. This offers advantages both for the donors, who can minimize their capital gains tax owed, and for nonprofits, who will be the beneficiaries of larger gifts and who often have a hard time accepting these assets directly.”

The report also notes that millennials are far more likely to be cryptocurrency investors than baby boomers and Gen Xers, as they have greater trust in its long-term outlook. Fidelity Charitable’s study was conducted on its behalf by Artemis Strategy Group, in July and August, and included 1,216 investors in the United States.

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