• Crypto is the top investment for Gen Z (59%) and Millennials (57%) in ETFs.
• Younger generations favor crypto due to economic events and technological advancements.
• Studies show younger investors rank alternative investments, including crypto, above traditional assets.

The Nasdaq 2024 Retail Investor Survey reveals that crypto is the top investment interest for both Gen Z and Millennials. According to the survey, 59% of Gen Z and 57% of Millennials selected crypto as their preferred ETF investment theme. This marks a notable shift in investment preferences, with younger generations showing a strong inclination towards digital assets.

Expert Insights on the Trend

Experts attribute this trend to several factors. Myles Ma, an analyst at Policygenius, notes that younger generations are more likely to invest in alternative assets like cryptocurrencies and nonfungible tokens (NFTs) compared to their older counterparts. This shift is partly due to the financial environment these generations have grown up in, marked by significant economic events and technological advancements.

Additionally, a study by Bank of America Private Bank supports Myles Ma’s sentiments. It shows that younger investors rank alternative investments, including crypto, higher than traditional stocks and bonds.

Dustin Wolk, a wealth adviser at Crescent Grove Advisors, explains that younger investors are seeking above-average returns. He noted that they believe these high returns are more achievable through alternative investments¹.

Market Data and Future Projections

Market data further underscores the growing interest in crypto among young investors. A survey by Policygenius found that 20% of Gen Zers and 22% of Millennials are more likely to invest in cryptocurrencies than stocks.

Additionally, a Bitget study revealed that 46% of Millennials across major economies own cryptocurrencies. This trend is expected to continue, with nearly all younger investors indicating plans to allocate more money to alternative investments in the coming years.

The increasing adoption of crypto by younger generations is reshaping the investment landscape. As these investors continue to prioritize digital assets, the market is likely to see further growth and innovation in the crypto space.