Who invests in cryptocurrency? The role of overconfidence among American investors

Cryptocurrency has received increasing attention due to its uniqueness among financial assets, and the char-acteristics of crypto investors have recently gained much interest. The present study aims to examine the linkage between financial confidence and cryptocurrency ownership. Using the representative sample of American in-vestors, we find that financially overconfident investors are nearly 8 % more likely to be crypto owners and 10 % more likely to be probable crypto owners as compared to underconfident investors. Our findings are robust to sample selection bias and help in understanding the characteristics of crypto owners in terms of financial con-fidence. Based on these findings, regulators and policymakers may raise awareness about the overconfidence bias among existing and potential crypto investors.