The report

Cryptocurrencies, the market in Italy is worth 2.2 billion

Fabi's photograph: 1.35 million Italians involved, who bet an average of 1,600 euro each. On a global level a 3 trillion dollar phenomenon

by Finance Review

30 November 2024

Cripto, cresce l’interesse in Italia e a livello globale

3' min read

Key points

Growth
Crypto dentistry
Global data
Sileoni: "Huge risks, no safeguards"

3' min read

In Italy, the cryptocurrency market is worth EUR 2.22 billion and there are 1.35 million Italians who have 'invested' in cryptoassets, with an average of EUR 1,600 per head. The data are provided by Fabi, which has taken a snapshot of the sector, which has come back into the limelight not only because of the surge in the value of Bitcoin and other virtual currencies after Donald Trump's victory, but also because of the government's intention to raise the tax rate on capital gains from crypto.

Growth

The market figure is for June, explains the banking union, and is up by EUR 870m (+64%), compared to EUR 1.35bn in June 2023. The trend over the 12 months, however, has seen strong rises followed by sharp falls in quotations and marked fluctuations. In fact, the euro countervalue of the total balance of virtual currencies went from EUR 1.35 billion at the end of June 2023, to EUR 917 million in September of the same year, and then rose again to almost EUR 1.5 billion in December, before surging in the first quarter of 2024 to almost EUR 2.9 billion (+92% in just three months) and falling back to EUR 2.2 billion in June 2024, a contraction of 22.4% in just three months.

Crypto dentists

More than 99% of the holders are natural persons. Of these, millennials are the most numerous (37%), but hold amounts of around 39% of the total value, while holders between 40 and 60 years old, while representing 28% of the total, have 49% of the total invested. The data, Fabi goes on to explain, are however not exhaustive of the cryptocurrency market in Italy: only a portion of cryptocurrency wallets and transactions in fact take place through service providers regularly registered in Italy, which means that a share of Italians' investments in bitcoin or other instruments is not included in official monitoring and statistics.

Global Data

The global cryptocurrency market, on the other hand, is worth USD 3 trillion: the figure is in this case updated in mid-November and is up by 79.2 per cent compared to January 2024, when the total turnover of Bitcoin, Ethereum and other 'cryptos' stood at around USD 1,680 billion.

In percentage terms, the largest cryptocurrency market is firmly in the United States, with 16.58% market share at the end of September, followed by India, with 9.44%, and Brazil with 8.10%. Among the several thousand cryptocurrencies, by far the highest market share belongs to Bitcoin, which has reached 60 per cent over time, followed by Ethereum at around 13 per cent.

As for the overall value, Fabi points out, however, that compared to the 'traditional' and regulated financial markets, these are marginal volumes: the overall capitalisation of securities listed on financial markets, at global level, stood at $112 trillion in November.

Sileoni: 'Huge risks, no safeguards in place'

"Cryptocurrencies are undoubtedly one of the most controversial frontiers of the modern economy, a symbol of a world in continuous evolution, but also of a panorama that presents itself with enormous risks for savers," says Fabi secretary general Lando Maria Sileoni, commenting on the union's report on cryptocurrencies. 'Those who decide to buy cryptocurrencies must know that they are not currencies like the euro or the dollar, but highly speculative and, above all, unregulated investment instruments. - He explains - This means that, in the event of losses or fraud, there are no legal and contractual protection tools that can protect the citizen. I never demonise innovations, but I stress the urgency of clear and complete information. Cryptocurrencies cannot be approached lightly or with the hope of easy gains: we need to know all their critical aspects, from their extreme volatility to the lack of institutional protection'.

Sileoni calls on institutions and supervisory authorities 'to strengthen the regulatory framework', invoking at the same time 'a greater commitment to spreading financial education, because only with awareness and full knowledge can a potentially dangerous phenomenon be turned into an opportunity'.