Crypto Collapse Threatens to Leave Black, Hispanic Investors Further Behind
The rout in digital assets may exacerbate inequities in financial markets.
A Bitcoin logo on the screen of a cryptocurrency automated teller machine (ATM) inside an Alza.cz store in Prague, Czech Republic, on Tuesday, May 17, 2022.
Photographer: Milan Jaros/BloombergCrypto assets that lured investors of color with the promise of quick wealth are now in freefall, threatening to widen existing inequities in financial markets.
In a June survey of more than 4,400 adults, about a quarter of Black and Hispanic respondents said they owned or held cryptocurrencies, compared with just 17% of their white counterparts, according to a new report from business intelligence firm Morning Consult. That implies a larger proportion of investors of color have been hurt by the crypto rout, which has wiped away $2 trillion in market value since last fall.