In 2024, crypto-assets consolidated their position as one of the most popular areas of investment among Ukrainian businessmen. According to the survey CEO Club Ukraine, every fourth entrepreneur decided to invest in this sector. Such dynamics indicate a change in traditional approaches to capital management, because cryptocurrencies are becoming an integral part of modern business strategy.
Where do Ukrainian entrepreneurs invest, apart from their own business?
Interest in crypto-assets is due to their high profitability, global availability and technological innovations that attract entrepreneurs even in conditions of economic instability. Ukraine, which has been among the leaders in the pace of implementation of blockchain technologies for several years, demonstrates how digital assets are integrated into the real sector of the economy and the financial market. The growth of cryptocurrency investments also indicates a change in approaches to risk management, as entrepreneurs view digital assets not only as a tool to preserve capital, but also as a promising direction for long-term investments.
Infographic: IA “FACT”
This trend is confirmed by the publication’s statistics Visual Capitalist, which certifies that in 2024, Ukraine will rank 9th in the top ten countries in terms of the percentage of owners of cryptocurrencies
Infographic: IA “FACT”
The results of the survey also testify to the desire of investors to combine both traditional assets and innovative opportunities, which indicates a change in approaches to portfolio diversification in the face of modern challenges.
In particular, startups and venture investments are gaining popularity. Most respondents invest in these two positions, which are high-risk, but promising areas. The second place is occupied by investments in shares and bonds of international companies (34%), which indicates the efforts of investors to diversify assets abroad. Real estate in Ukraine (30%) and abroad (24%) remains a “quiet haven” for investments. This is how it happened historically. Even during crises, real estate prices may fall, but in the long run they tend to recover and grow. Not the entire territory of Ukraine is equally affected by military actions. Conditionally safe regions, such as the western regions of Ukraine (Chernivetska, Zakarpattia, etc.), remain attractive for investments due to stable demand. In addition, the choice of a business of this position for capital investments is a good sign for our country. The popularity of real estate investments during the war shows the confidence of some investors in the restoration of the country’s economy after the end of the conflict. At the same time, it confirms that the real estate market remains a tool not only for preserving, but also for increasing capital for those who are ready to take risks.
Despite their volatility, cryptocurrencies were chosen by 25% of respondents, indicating their growing role in investors’ portfolios. Precious metals (6%) and distressed assets (6%) received the least attention, perhaps due to low liquidity or difficulty in working with them. Investments in shares of private companies (28%) are quite popular, which may indicate confidence in this segment, especially in the formation of long-term strategies.
Ukrainian entrepreneurs invest not only in Ukrainian projects
Infographic: IA “FACT”
The fact that 31% of respondents invest exclusively in Ukraine also testifies to the high level of confidence in the country’s economic recovery even in difficult conditions. This can be due to both patriotism and long-term faith in the potential of the market.
The distribution of the remaining respondents between partial investments in Ukraine and abroad demonstrates a balance between the desire to support the local economy and the need to reduce risks through global diversification.
A third of respondents invest less than 10% of their portfolio in Ukraine. This may indicate caution among investors who want to minimize the risks associated with hostilities, macroeconomic challenges and inflation.
Although some respondents actively invest in Ukraine, others choose safer foreign assets. This is understandable in an environment of instability and the risk of losing assets through physical destruction or economic hardship.
Investing exclusively in Ukraine can be interpreted as a strategic step that not only contributes to one’s own financial profit, but also helps to stimulate the recovery of the national economy.
What do Ukrainian investors associate development prospects with?
Infographic: IA “FACT”
Which asset classes generated the most interest among entrepreneurs for further study and development of expertise in 2024? They showed the highest interest in shares of international companies (53%). This indicates the desire of investors to focus on active markets with high liquidity. Shares of international companies provide access to stable profits, opportunities for global diversification and reduced risks associated with local crises.
The venture capital sector (43%) remains important for investors looking for high-yield opportunities, although this asset class is risky. Interest in this segment indicates the desire of investors to invest in innovative industries and new technologies.
Interest in real estate (Ukrainian — 38%, foreign — 41%) remains stable both within Ukraine and abroad. Real estate is generally considered a safe asset, even during periods of volatility. Ukrainian real estate can be attractive because of the possibilities of recovery, and foreign real estate – because of a more stable economy.
The demand for land (33%) as an asset class demonstrates long-term expectations regarding the recovery of Ukraine’s economy and its agricultural potential. Interest in the land may be driven by relatively low competition and prospects for increased value.
Shares in companies (32%) remain important for those seeking to influence business. Investors who choose this sector are usually interested in direct investments that allow for both profit and strategic participation in the development of companies.
Interest in bonds (26%) may be related to the desire to reduce risks and receive stable income. This indicates a growing focus on conservative investment strategies.
The popularity of cryptoassets (24%) remains stable, although not at the highest level. This asset class attracts investors who are willing to take high risks for potentially high returns.
Interest in distressed assets (23%) may indicate the willingness of some investors to seek profit in crisis market situations. This is a strategy for experienced players who know how to assess risks.
Among all asset classes, precious metals are the least popular (11%). This may indicate that investors are less interested in traditional “defensive” assets and are more focused on modern instruments with higher growth potential.
Therefore, the given data demonstrates the overwhelming interest of investors in assets with high return potential, such as shares of international companies, startups and real estate. Meanwhile, conservative assets like bonds and precious metals remain less popular, but are still part of a strategy to reduce risk. The interest in venture investments and private equity shows that investors seek not only stability, but also active management of their capital.
