Recent data from New Zealand-based exchange Easy Crypto has revealed that Australian investors are outpacing their global counterparts in terms of cryptocurrency ownership, with one in five adults currently or previously owning crypto.

Compared to the estimated global crypto adoption rate of just 6.8 percent, this places Australia firmly in the “early adopter” category of the crypto adoption spectrum, according to the exchange.

While crypto adoption is increasing for both retail and institutional investors, market experts say Australia’s preference for traditional investments such as residential property and bonds remains a barrier.

Benjamin Selermeier, director at Magnet Capital, says many local investors still have a more conservative approach.

"There is a bias in this country towards property, bonds, property yields and stocks ... I think it's very difficult to overcome that," Selermeier told InvestorDaily.

"Australia hasn't had a recession for decades and so I think we're in that position where people have felt very comfortable allocating the way they have historically because it's worked for so long and it creates comfort in system.”

In contrast, the U.S. is facing a housing downturn and increased political instability, prompting investors to diversify their portfolios more actively in response, according to Celermajer.

"I don't think that's necessarily been the case in Australia," he said.

"Investors here are not paying much attention to the possibilities that cryptocurrencies have."

Global X investment strategist Mark Jockum agreed, pointing out that Australian investors continue to tread carefully around the emerging asset class.

This perception, he said, is particularly strong among the country's retirees, who may be hesitant to gain exposure to an asset class that does not produce income or exhibits the defensive characteristics of assets such as gold or bonds.

“But for the younger demographic, and even as we see things like institutions coming into the market, we're starting to see more institutions looking overseas for bitcoin than in Australia. It may just be a matter of time,” Jocum told InvestorDaily.

"I still think Australians are waiting, watching what might happen. That being said, there is still strong growth in adoption and I expect this to continue for the foreseeable future.”

Jockum added that while there is evidence that bitcoin within a portfolio can improve risk-adjusted returns, domestic investors are aware of its ability to "cut" on the other side.

"For many conservative investors, they don't like to see a high level of volatility within their portfolio, so they tend to go to traditional, time-tested asset classes."