Recent findings reveal that nearly half of young investors in the United States are now owners of cryptocurrency, highlighting a significant generational shift in investment strategies. A survey conducted by Coinbase in collaboration with Ipsos indicates that 45% of Gen Z and Millennial investors have ventured into the crypto space, a stark contrast to just 18% of older investors. This 27-point difference underscores how younger generations are increasingly gravitating towards digital assets as traditional avenues for wealth accumulation become less viable.
Younger investors are expressing skepticism about conventional methods of wealth building. The survey indicates that 73% of adults in these younger demographics believe their generation encounters greater obstacles when it comes to achieving financial success through traditional means, compared to only 57% of older respondents. These sentiments are supported by data showing that housing affordability is at a historic low, exacerbated by rising student debt and stagnant wages that are failing to keep up with escalating living costs.
While the percentage of stock ownership remains fairly consistent across age groups, with 47% of younger investors holding stocks compared to 50% of older ones, the difference lies in the additional assets younger individuals are exploring. They are actively seeking to enhance their returns through non-traditional investments, including crypto, derivatives, and non-fungible tokens (NFTs). On average, younger investors allocate around 25% of their portfolios to these alternative assets, which is three times the 8% that older investors dedicate to similar investments.
For many young investors, cryptocurrency is not merely a speculative play; it constitutes a fundamental part of their investment strategy. Approximately 47% of these individuals express a desire to access new crypto assets prior to their official market launches. This contrasts sharply with the mere 16% of older investors who feel the same way. Furthermore, 80% of younger adults believe that cryptocurrency opens up more financial opportunities for their generation, and a similar proportion anticipates that crypto will play an increasingly prominent role in future financial frameworks.
The pursuit of crypto exposure has prompted some young investors to change financial advisors, reflecting the growing demand for digital asset access. A recent survey from Zerohash found that 35% of wealthy young Americans, earning between $100,000 and $1 million annually, have already shifted their funds away from advisors who do not offer crypto options. More than half of those who made the switch transferred substantial amounts, between $250,000 and $1 million, to new advisors. Among those earning $500,000 or more, 50% have specifically sought new advisory services to gain crypto access.
Social media has emerged as a crucial source of investment information for younger investors. The Coinbase survey found that 61% of investors under 35 now rely on social media influencers for investment advice, with platforms like YouTube gaining prominence over traditional financial advisors and established news outlets. This marks a shift in how young investors prefer to receive information, indicating a desire for more relatable and accessible sources.
Despite the enthusiasm among younger investors, overall interest in cryptocurrencies has waned among the general population. A study from the FINRA Foundation revealed that the percentage of all U.S. investors considering crypto dropped from 33% in 2021 to 26% in 2024. Concurrently, the perception of cryptocurrencies as high-risk investments has increased, with the figure rising from 58% to 66%. This caution is predominantly observed within older demographics, while younger investors continue to actively trade and engage with a variety of digital assets.
In response to these evolving trends, Coinbase is developing an innovative trading platform dubbed the “Everything Exchange,” aiming to accommodate the expectations of younger investors who demand flexibility and a diverse range of assets. As the landscape of cryptocurrency evolves, financial service providers face a pivotal choice: adapt to meet the needs of the next generation or risk falling behind.
The bottom line is clear: young investors are integrating cryptocurrency into their wealth-building strategies, driven by a belief that traditional methods no longer suffice. With 45% of them already holding digital assets and dedicating a significant portion of their portfolios to alternative investments, this trend signifies a profound transformation in how a new generation approaches financial growth.
