The European Central Bank has published a working paper by ECB and academic authors using Consumer Expectations Survey data from 11 euro area countries over 2020 to 2024, finding that household participation in risky assets remains limited and unstable despite regular inflows of new investors. The paper, which reflects the authors’ views rather than the ECB’s, estimates that about 10% of non-stockholders enter the stock market each year while more than 20% of stockholders exit, leaving participation broadly stable at low levels. Around one third of households hold stocks or mutual funds, with direct stock ownership closer to one quarter, while crypto ownership stands at about 8% to 10%. The analysis finds that non-participation reflects both financial constraints and behavioural barriers. Lower-income households most often cite a lack of money, while risk aversion, limited financial knowledge and low trust in financial institutions remain important across income groups and countries. New stock market entrants tend to be younger and closer to non-investors than established investors, with lower income, education, financial literacy and risk tolerance, suggesting that pandemic-era gains in participation were fragile. On crypto assets, the paper finds ownership is concentrated among younger, male and more risk-tolerant households, investment amounts are generally small, and holdings are mainly speculative rather than long term, with lack of trust in technology, platforms and consumer protection a key barrier to adoption.
European Central Bank2026-05-27
European Central Bank working paper finds euro area stock market participation remains low despite high investor turnover and rising crypto ownership
The European Central Bank published a working paper using Consumer Expectations Survey data from 11 euro area countries (2020–2024), finding that household participation in risky assets remains low and broadly stable despite inflows of new investors. About 10% of non-stockholders enter the stock market each year while more than 20% of stockholders exit, with non-participation driven by financial constraints and behavioural barriers, and pandemic-era gains in participation fragile. The paper also reports that crypto ownership of around 8% to 10% is concentrated among younger, male and more risk-tolerant households, with small, speculative holdings and trust concerns limiting wider adoption.