Why Do Young People See A Promising Future In Crypto?

Millennials have always been at the forefront of adopting new financial technologies. A recent study by Schwab shows that this group of investors is increasingly turning to crypto, primarily through ETFs. This report reveals their strong interest in digital assets, placing them at the top of their investment priorities for the coming year.

Why Millennials are Betting on Crypto ETFs

It has long been known that Millennials massively adopt cryptocurrencies. However, the survey conducted by Schwab reveals that nearly half of the surveyed Millennials plan to invest in crypto ETFs, placing this asset class at the top of their preferences for the coming year. But why such enthusiasm for cryptocurrencies via ETFs? The answer lies in their flexibility and accessibility.

Indeed, crypto ETFs allow investors to benefit from the volatility of cryptocurrencies while diversifying their portfolios with a regulated structure. For Millennials, it is an opportunity to invest in an asset class that has the potential to generate high returns without having to manage the cryptos themselves directly. 

• 45% of Millennials will invest in crypto ETFs in 2024;
• 57% consider diversification their main goal;
• 46% seek to reduce risks by integrating fixed income into their portfolios.

David Botset, director of innovation at Schwab, highlights this approach: 

“Millennial investors are both bold and thoughtful. Their affinity for ETFs reflects their desire to combine risk and security to achieve their financial goals.“

Increasing Adoption 

Millennials are not just investing; they customize their portfolios to match their values. The study indicates that 62% of them plan to invest in cryptocurrency-related ETFs. This generation, often described as “FOMO” (Fear Of Missing Out), seeks to maximize its returns while aligning its investments with its beliefs. 

This drives them to seek investment opportunities that combine innovation, responsibility, and profitability.

Another key factor is how Millennials adopt ETFs to navigate economic uncertainties. Unlike previous generations, they are more inclined to take calculated risks to benefit from the volatility of the crypto market. 

Their goal is clear: achieve a quick return on investment while benefiting from the regulation of ETFs, which offer a more secure framework than direct cryptocurrencies.

They also favor actively managed ETFs, seeking to leverage the expertise of portfolio managers to optimize their investments. This approach sets them apart from other generations that tend to be more conservative.

Thus, Millennials see crypto ETFs as an opportunity for diversification and growth. The questionable practices of traditional banks have left many people high and dry, but Millennials are determined to reverse the trend by betting on bitcoin to get rich.