Bank of America: Younger Wealthy Investors Prefer Crypto Over Traditional Investments

Bank of America report shows younger affluent individuals favor crypto and alternative investments, differing from older generations’ traditional focus. “In fact, the most ‘conservative’ group is holding the highest average exposure to crypto,” the bank said.

‘Younger Groups Hold More Crypto and More Alternative Investments’

Bank of America released a report titled “2024 Bank of America Private Bank Study of Wealthy Americans” on Tuesday, highlighting notable trends and examining how generational dynamics and the upcoming wealth transfer are shaping financial strategies.

The report highlights that younger affluent individuals are considerably more inclined to invest in cryptocurrencies compared to their older counterparts. These younger investors tend to favor a diversified portfolio, allocating a significant portion to crypto assets and alternative investments. This approach contrasts with the traditional focus on stocks and bonds typically preferred by older generations. The Bank of America report states:

Older investors hold a lot more traditional equities, while younger groups hold more crypto and more alternative investments.

According to the report, “Three-quarters of younger people agree that it’s no longer possible to achieve above-average returns with stocks and bonds alone, compared to just one quarter of those Gen X and older, similar to 2022 findings.” This belief drives them to explore alternatives such as cryptocurrencies and private equity. Although interest in cryptocurrencies has decreased slightly since 2022, it continues to be a significant part of younger investors’ portfolios. The report anticipates that these investors will likely increase their allocation to alternative investments, including cryptocurrencies, in the coming years.