Millennials are choosing cryptocurrencies en masse: great potential for Bitcoin and DeFi, research shows

Millennials are increasingly focusing their investments on cryptocurrencies, according to a new study from investment bank Charles Schwab. The research, which examined the investment behavior of 2,200 investors, shows that this group is strongly focused on crypto assets as a future investment goal.

62% of millennials choose crypto investments

When asked where they would like to invest their money in the coming year, a whopping 62% of millennials said they preferred cryptocurrencies. US equities and fixed income products followed in second and third place.

Asset transfer stimulates crypto market

Experts expect that a wealth transfer of approximately $84 trillion from older to younger generations could provide a major boost to the crypto market. According to data from Bank of America, crypto analyst Noelle Acheson predicts that around $20 trillion will flow into cryptocurrencies over the next decade. Of this, about half would go to Bitcoin, while the rest would be invested in DeFi, memecoins and other crypto projects.

Bitcoin ETFs popular among large asset managers

Spot Bitcoin ETFs remain a hot topic for asset managers. For example, BlackRock, led by CEO Larry Fink, launched a Bitcoin ETF in January that is now the market leader with an investment of $22 billion. This is striking, given that Fink was critical in 2017 and called Bitcoin a “tool for money laundering”. However, he recently highlighted that “Bitcoin” is one of the most searched terms on BlackRock’s website.

Fidelity, with an investment of more than $10 billion in its Bitcoin ETF, is also actively pursuing blockchain education for young people through TikTok and X (formerly Twitter). The 69-year-old asset manager VanEck shows his commitment to the new generation by using a PudgyPenguin NFT as a profile photo on X.

Older generations are also showing interest in crypto

Although cryptocurrencies are especially popular among millennials, Charles Schwab’s research shows that older generations are also showing interest. Nearly half of investors surveyed, including Generation X and Baby Boomers, are considering investing in crypto ETFs in the coming year.

“It’s quite striking,” said Eric Balchunas, senior ETF analyst at Bloomberg, about the growing intergenerational interest in the crypto market.