VP of Research Highlights Bakkt’s Positive Findings in Its Consumer Crypto Studies



KEY POINTS
  • On January 19, we held a fireside chat with Bakkt VP of Customer and Market Insights Kim Kardash. The conversation can be accessed on demand.
  • Kardash highlighted how Bakkt leverages data, collected through consumer research, market intelligence, and customer analytics, to keep up with changes in consumer sentiment around crypto and loyalty. She explained that the company has put in place research platforms and intelligence partners over the past year. These efforts provide multiple ways to gather insights on topics very quickly, which is extremely helpful given the volatile market environment.
  • In October, the company fielded its first ever attitudes, awareness, and usage tracker, which is similar to a brand tracker. It’s made up about 70 questions about past behavior and intended future behavior, such as how someone has interacted with crypto in the past six months. The tracker found no change pre and post FTX when it came to likelihood to purchase in the future by the crypto-curious, and only a 7% drop by crypto owners.
  • With respect to bigger trends, 70% agreed with that crypto is the future of money—both crypto-curious and crypto owners. It seems that consumers are comfortable with things evolving and changing, and they just see everything going digital, so why not money?
  • Kardash also noted that its recent research study reinforced the importance of Gen Z to the future success of crypto. Gen Z’s adoption of crypto started to pick up in 2022. From July to October, Gen Z Bitcoin ownership growth jumped 8%, which outpaced every other generation. This should position Bakkt well given its recently announced acquisition of Apex Crypto, whose partner base consists mostly of fintechs with significant Gen Z and millennial customer demographics.
  • Kardash’s research found that banks are positioned incredibly well to deliver on a crypto value prop and one of those reasons is trust. The company found that the crypto-curious trust their bank 30% more than the typical crypto trading app for purchasing crypto.
  • A December study found that of those who already own crypto, 75% said that they would be open to moving their crypto from an exchange to a bank if their bank had a mechanism to do that, which is what Bakkt’s Crypto Connect does.

On January 19, we held a fireside chat with Bakkt VP of Customer and Market Insights Kim Kardash. The conversation can be accessed on demand.

EXECUTIVE DISCUSSION

John Roy: Welcome investors. I’m John Roy, Managing Director at Water Tower Research, and I’m very pleased today to be joined by Kim Kardash from Bakkt. Could you give us your background and what you do at Bakkt?

Kim Kardash: I serve as VP of Customer and Market Insights at Bakkt. There are a lot of different pieces within that, so I’ll break it down for you briefly. First, there’s consumer research, which means understanding the needs and wants of the consumer through qualitative and quantitative methods, and then taking those learnings and educating our organization, partners, and clients with the voice of consumer.

What we want to show them is who is this person outside of their transactions and what do they value? Then there’s market intelligence. What are other players in our space doing and how well are we positioned in that space? What trends are out there that are affecting consumers?

Lastly, the third piece of my ...

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