The 2024 ETFs and Beyond Study by Charles Schwab highlights the increasing interest in cryptocurrencies among Millennials, with 62% of Millennial ETF investors planning to allocate part of their portfolios to digital assets in the next year. This marks a significant shift in investment preferences, as crypto is now the second most popular asset class among all investors surveyed. The study gathered insights from 2,200 investors, showcasing Millennials’ enthusiasm for alternative asset classes like cryptocurrencies, which have become the second most popular investment choice for this demographic.
Millennials are particularly interested in spot crypto ETFs, with 39% of investors eyeing this high-risk, high-reward strategy compared to Gen X and Boomers. The report highlights that this generation is looking to diversify their portfolios and invest in markets that reflect future trends and technological innovations. Millennials are also more likely to embrace specialty ETFs, real assets like commodities and infrastructure, and bonds and fixed income. Despite their willingness to take risks, younger investors are cautious, with concerns about portfolio recovery in the event of a recession or unforeseen event.
The study also reveals that Millennials are more likely to personalize their portfolios, with 46% planning to invest in companies and funds that align with their social, environmental, or ethical values. This reflects a shift in how this generation views wealth creation, with nearly half of those surveyed citing personal beliefs and values as reasons for their interest in digital assets. The growing role of education is also driving investment decisions among Millennials, with many expressing interest in exploring investment methods like direct indexing and customization options.
Despite market volatility, nearly 40% of Millennials remain bullish on cryptocurrencies, indicating a long-term outlook on the asset class. As financial institutions like Schwab introduce more crypto and blockchain-based products, younger investors are expected to continue diversifying and personalizing their portfolios. The study suggests that as crypto products evolve, they will attract a younger, more tech-savvy investor base, solidifying digital assets as a foundational element of portfolios for the next generation. With the growing popularity of cryptocurrencies, financial institutions are likely to innovate further with ETFs and other financial products tailored to the preferences of younger investors.
