75% of young US investors want to diversify their crypto portfolios (BoA Survey)

75% of Millennial and Generation X investors prefer alternative investment instruments, such as cryptocurrencies.

Two-thirds of American investors polled, aged 21 to 42, believe that above-average returns cannot be achieved by relying solely on traditional finance. Instead, they see cryptocurrencies as the right tool for the job.

Many previous studies have shown that younger generations are much more inclined towards the digital asset sector than older individuals. At the height of the bull run in 2021, many young people said they would be happy to receive part of their salary in crypto instead of fiat.

Diversification is the key

In its surveys, Bank of America estimates that 75% of U.S. investors aged up to 42 think that alternative financial instruments such as cryptocurrencies, real estate, private equity and Commodities should make up a certain part of their portfolio. In their view, exposure to traditional stocks and bonds alone cannot guarantee future returns.

Meanwhile, only 32% of people over that age group are of the same opinion that they prefer to allocate their money to stocks and only distribute 5% of their money to alternative investments like cryptocurrencies.

The analysis further revealed that 68% of the parents polled had an educational discussion with their children about how to pass on family wealth to them. Baby Boomers are expected to move $84 trillion to Generation X and Millennials by 2045.

Katy Knox – President of Bank of America Private Bank – declared, “planning to get rich is inherent in many generations”.

“As we see in our client families, financial behaviors and values ​​form early in life and live on in legacies passed down from generation to generation. These research findings point to the greater role that wealth advisors and the financial services industry are playing in helping families transform wealth and meet the needs of the next generation. ” she added.

Overall, most of the older generation probably wouldn’t advise their children to interact with cryptocurrencies because they want to stay away from the asset class.

However, the lesson can be completely different when Generation X and Millennials teach their children about their plans to earn money in the future.

Millennials and their love for cryptocurrencies

A CNBC study from 2021 estimates that 47% of Millennial millionaires have invested at least a quarter of their money in digital currencies. On the other hand, 83% of the old investors did not like the cryptocurrency and did not invest in it.

Another survey found that Millennials are the demographic most attracted to the asset class. As bitcoin neared an all-time high in November, 36% of those polled born between 1981 and 1996 said they would like to receive some of their work payments in crypto. Generation Z is even more favored because 50% want that option.

This summer, investment firm Alto assessed that 40% of US Millennials are HODLers. The exact number of people who admitted to owning the stock, while less than that, revealed that they had exposure to mutual funds.

Read more: Kevin O’Leary Expects Bitcoin to Rise When the Stablecoin Transparency Act is Passed