Crypto assets were the second most popular asset class among all investors surveyed.
Source: cryptoslate
Compiled by: Blockchain Knight
Crypto assets have been gaining momentum among younger investors, according to Charles Schwab’s 2024 ETFs and Beyond Study. 62% of millennial ETF investors plan to allocate a portion of their portfolio to digital assets in the coming year.
Crypto assets were the second most popular asset class among all investors surveyed, marking a significant shift in investment preferences.
Investors’ interest in crypto assets has risen significantly compared to previous generations, where only 44% of Generation X investors and 15% of Boomer investors expressed similar interest.
The survey, conducted from July 2 to July 20, gathered opinions from 2,200 investors, including 1,000 ETF investors and an additional 200 respondents who started investing after 2020.
The study found that millennials are particularly keen on investing in alternative assets such as Crypto assets. Currently, Crypto assets have become the second most popular investment option for this group, second only to US stocks.
Millennials not only want to diversify their investments, but also want to invest in markets that reflect future trends and technological innovations.
Meanwhile, 39% of millennial investors are eyeing spot crypto ETFs, with this group more likely to pursue high-risk, high-return strategies than Generation X (24%) and Boomers (11%).
Millennials are also more likely to embrace specialized ETFs, including those focused on long-short strategies, volatility hedging and smart beta products.
In addition to Crypto assets, Millennials are interested in real assets such as commodities and infrastructure at 45%, and bonds and fixed income at 47%.
However, the survey also revealed a cautious attitude among younger investors. About 66% of millennials expressed confidence in their ability to outperform the market, but also admitted that they were concerned about whether their portfolios could recover in the event of a recession or a "black swan" event.
This cautious optimism is influencing their investment decisions, with many prioritizing diversification through Crypto assets, which offer both inflation protection and growth opportunities.
Meanwhile, Crypto assets have become an important part of millennials’ portfolios for reasons beyond mere speculation.
Nearly half of respondents said their interest in digital assets stems from a desire to align investing with personal beliefs and values, further indicating a shift in how this generation views wealth creation.
Millennials are also the most likely to personalize their portfolios, with 46% planning to invest in companies and funds that reflect their social, environmental or ethical values.
The study highlights the growing role that education plays in driving millennials’ investment decisions.
As more and more financial institutions launch products based on Crypto assets and blockchain, the information about these assets is also expanding.
In fact, Millennials are more familiar with direct indexing and similar customized options than older generations, with 80% expressing interest in further exploring this investing approach.
Despite the market turmoil, the study found that nearly 40% of millennials remain bullish on crypto assets, reflecting their long-term outlook for the asset class.
Schwab’s survey suggests that as crypto products develop, they will continue to attract younger investors who are eager to diversify and personalize their portfolios.
As crypto assets gain more and more attention, financial institutions are expected to further innovate ETFs and other financial products to cater to the preferences of a younger, more tech-savvy investor base.
The findings suggest that digital assets are more than just a passing trend, but are becoming a foundational element of next-generation investment portfolios.
