A new study by Schwab Asset Management has revealed that investors, especially millennials, are increasingly interested in investing in cryptocurrencies through exchange-traded funds, or ETFs.
This study, entitled “ETFs and Beyond 2024”, highlights how, amid an environment of political and economic uncertainty, traditional investors remain calm and continue to invest in financial instruments such as exchange-traded funds.
According to the data, from 2023 to 2024, millennials' interest in cryptocurrency-based investment products increased by 7%, from 38% in 2023 to 45% today. In addition, a 62% of respondents from this generational group revealed that they have plans to increase their investments in cryptoassets, through instruments such as ETFs, in the coming year, exposing the growing interest that exists in this class of digital assets.
Millennials: The driving force behind cryptocurrency investment
According to study, millennials are the ones driving the most interest in cryptocurrencies through ETFs. The investment firm highlighted that millennials represent 62% of investors who plan to increase their exposure to cryptocurrencies in the next year, emphasizing that this demographic is not only looking to diversify their portfolios with crypto assets, but also align with their values and investment goals.
Schwab Asset pointed out that millennials' preference for cryptocurrencies is driven by the search for growth opportunities and the possibility of obtaining higher returns.
Millennials have also shown a growing interest in fixed income and alternative ETFs. This is in contrast to the interest in cryptocurrencies among other demographic groups, such as Gen Xers and boomers, who are much less interested in cryptocurrencies and digital assets as investment alternatives.
The firm also highlighted that millennials have taken a diverse approach in exploring different asset classes, including cryptocurrencies, reflecting a deeper understanding of the importance of diversification in risk management.
Cryptocurrencies are transforming investment strategies
The study published by Schwab Asset suggests that the inclusion of cryptocurrencies in investment portfolios has gained great relevance among investors in the last year. Investors are increasingly interested in customizing their portfolios with digital assets, reflecting a change in the way they are approaching the construction of their financial future.
Regarding ETFs, the firm stressed that these financial instruments have gained considerable popularity in recent years, currently representing 27% of investors' portfolios. This growth is due, in part, to the flexibility and diversification offered by ETFs, which has prompted investors to increase their allocation to these instruments. Now, with the arrival of cryptocurrency-based exchange-traded funds, investors can allocate part of their portfolios to assets such as Bitcoin and Ethereum, which offer significant appreciation potential and can help investors obtain better returns.
The growth of ETFs, especially in the crypto space, reflects an evolution in the way investors approach their portfolios. Schwab Asset Management’s study highlights the combination of millennials’ strong confidence in their investment strategies, their focus on diversification and their search for personalization, which are paving the way for the future of investing in the crypto sector.
Since approval to date, U.S.-approved Bitcoin ETFs have attracted nearly $20.000 billion in net inflows, and manage more than $56.000 billion in assets under management, with recognized by leading figures in the financial world, such as Larry Fink, among the fastest growing exchange-traded funds in the history of the market.
