Bank of America found that younger, wealthier Americans are 7.5 times more likely to hold crypto in their portfolios than investors over 43.” If the youngest cohort is not confident in stocks, where do they see opportunities for investment growth? Alternatives, including cryptocurrencies, which are their No. 1 choice,” the bank writes.
Young affluent Americans prefer cryptocurrencies over stocks
Bank of America this week released its “2022 Private Bank Survey of U.S. High Net Worth Individuals,” which presents the results of an online survey conducted in May and June of 1,052 individuals over the age of 21 with household investable assets of $3 million or more. The bank noted that the respondents are a nationally representative sample of high net worth individuals in the U.S. and not necessarily Bank of America clients.
“In traditional investment advice, younger investors hold more stocks than older investors, not less. However, the 21- to 42-year-old age group holds only a quarter of their portfolio in stocks, compared to 55% for investors 43 and older,” the report elaborates, noting that.
If the youngest cohort is not confident in equities, where do they see opportunities for investment growth? Alternatives, including cryptocurrencies, are number one.
“Twenty-nine percent of young people said crypto presents a major opportunity for wealth creation, while only 7% of the older group agreed. Younger groups are generally
more interested in private equity and debt, as well as sustainable and environmental, social, and governance (ESG)-related investments,” the report added.
Bank of America elaborates, emphasizing that age is “the dominant factor with respect to interest in cryptocurrencies.”
Despite lower overall usage, young adults are 7.5 times more likely to have crypto in their portfolio and 5 times more likely to say they understand it fairly well.
Additionally, the survey states that “half of the younger group said they would look to social media for guidance on crypto, compared to 30% of the older group.”
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