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Crypto Collapse Threatens to Leave Black, Hispanic Investors Further Behind

July 7, 2022, 2:30 PM

Crypto 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.

Black households are nearly six times more likely ...