According to new research conducted, 83 percent of millennial millionaires currently hold cryptocurrency.
According to the President of CNBC’s poll partner Spectrem, the generational divide in investment might cause problems for the asset managers.
The year 2021 has proven to be the year of cryptocurrency acceptance, with headlines of institutional crypto investments and millennials becoming millionaires.
According to a new survey conducted by CNBC, the majority of millennial millionaires have invested a large portion of their wealth in cryptocurrency and want to continue doing so in 2022. The research questioned investors with $1 million or more in assets, and 83 percent of the millennial millionaires polled said they had made cryptocurrency investments.
In sum, 53% of poll respondents claimed they have at least 50% of their portfolio in cryptocurrency. Almost a third of those polled have put at least three-quarters of their net worth into crypto assets. While the survey findings may surprise some, those who followed the crypto bubble in 2021 will recall how a generation of TikTok investors won millions of dollars on meme currency bets.
In terms of investing, the CNBC survey found a significant age divide. On the one hand, millennials are investing up to 50% of their money in cryptocurrency, but just 4% of the elder generation has invested in digital assets, and only one-fourth of GenX owns cryptocurrency.
The increased interest of the new generation in the nascent crypto market, according to George Walper, president of Spectrem Group, which conducted the study for CNBC, could prove to be a problem for wealth managers. Traditional managers, he says, will have to reconsider their approach to these new investors. He elaborated:
“I’m not convinced the wealth management sector understands that these are two completely distinct generations.” The majority of businesses hoped to avoid it. Millennial millionaires, on the other hand, aren’t going to grow out of crypto.”
The survey also revealed that, rather than investing in traditional markets, the younger generation is willing to take more chances with cryptocurrency. According to the survey, 48 percent of millennial millionaires plan to increase their crypto investments in the coming year, while 38 percent plan to keep and only 6 percent aim to minimize their crypto exposure.
Apart from a boom in crypto millennial millionaires in the United States, crypto use in Australia has increased by 10% in the last year. According to the 2021 Independent Reserve’s Cryptocurrency Index (IRCI), which polled 2000 people, crypto investment among Australians has increased to 28.8%, up from 18.4% in 2020.