- Younger investors are expected to focus their investment on crypto.
- There’s $84 trillion passing from older generations to younger ones over the next decade.
Millennial investors are betting their money on crypto, according to a new survey by investment bank Charles Schwab.
The study examined the investment behaviour of 2,200 investors to better understand how they were approaching different kinds of exchange-traded products.
When asked where they would invest their money next year, 62% of millennials surveyed said they would invest in cryptocurrencies. American stocks and fixed-income assets were second and third, respectively.
The great $84 trillion wealth transfer from older generations to younger ones is expected to be a massive boon for crypto.
Using data collected by Bank of America, Noelle Acheson, a crypto analyst, said that roughly $20 trillion will be invested in cryptocurrencies over the next decade. Bitcoin will see half of that money, with the rest flowing into DeFi, memecoins and other projects.
Spot Bitcoin ETF issuers are paying close attention, too.
Though Larry Fink, CEO of the $11.5 trillion asset manager BlackRock, called Bitcoin a tool for money laundering in 2017, his firm launched a Bitcoin ETF in January. The ETF is now the market leader, with $22 billion in investment.
Fink has said that “Bitcoin” is one of the most searched-for terms on BlackRock’s site. If the Wall Street giant tracks clicks, it should also be aware of how younger generations are more interested in crypto.
Fidelity, which has over $10 billion invested in its Bitcoin ETF, has actively promoted blockchain education to younger generations on TikTok and X. The 69-year-old asset manager VanEck currently has a PudgyPenguin NFT as its profile picture on X.
Cryptocurrencies may have captured the hearts and wallets of millennial investors, but they do still play a role for older generations, according to Schwab’s study.
After American stocks, almost half of all investors surveyed — including Gen Xers and Boomers — plan to invest in crypto ETFs over the next year.
“Pretty stunning,” said Eric Balchunas, a senior ETF analyst for Bloomberg.
Liam is a Berlin-based correspondent for DL News. Got a tip? Email him at liam@dlnews.com