Bank of America has found that young wealthy Americans are 7.5 times more likely to hold crypto in their portfolios than investors 43 and older. “If the youngest group is not confident in stocks, where do they see investment growth opportunities? Alternatives, including cryptocurrencies, are their #1 choice,” the bank wrote.
Young Rich Americans Prefer Crypto to Stocks
Bank of America released its 2022 Private Banking Study of Wealthy Americans this week. The report highlights the results of an online survey, conducted between May and June, of 1,052 people over the age of 21 with more than $3 million in household investable assets. The bank notes that respondents are a nationally representative sample of the U.S. high-net-worth population and are not necessarily Bank of America customers.
“Conventional investment advice suggests that younger investors hold more stocks, not less, than older investors. However, the 21- to 42-year-old group holds only a quarter of their portfolio in stocks, compared with 55% of investors 43 and older,” the report details, noting:
If the youngest cohort doesn’t trust stocks, where do they see investment growth opportunities? Alternatives, including cryptocurrencies, are their #1 choice.
“While 29% of young people say cryptocurrencies offer the top opportunity to create wealth, only 7% of older people agree. The youth group in general is more interested in private equity or debt, as well as sustainable or related environmental, social and governance (ESG) investments,” the report added.
Bank of America emphasized that age is “the dominant factor when it comes to interest in crypto,” further explaining:
While usage is generally low, young people are 7.5 times more likely to hold crypto in their portfolio and are likely to say they understand it quite well.
Furthermore, the survey found that “Half of the younger group said they turn to social media for cryptocurrency instruction, compared to 30% of the older group.”
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