Crypto ETFs have become increasingly popular among Millennials, reflecting a shift in investment philosophies as traditional investors take notice. According to the latest Schwab Asset Management ETF study, Millennials are leading the charge with a strong appetite for cryptocurrency ETFs.
The annual Schwab Asset Management ETF study highlights that 62% of Millennials plan to invest in cryptocurrency ETFs over the next year, representing the highest interest among various asset classes. In comparison, 44% of Gen X and only 15% of Baby Boomers expressed similar interests.
According to the study, Millennials exhibit significantly higher levels of confidence in their investment skills. They are more inclined to believe they can outperform the market and are willing to take on greater risks for higher returns.
As ETF investors become more optimistic about various sectors, many plan to increase their investments in cryptocurrencies through ETFs. Currently, ETFs constitute 27% of ETF investor portfolios, and 65% intend to boost their ETF investments in the coming year.
Additionally, a study from the Alternative Investment Management Association (AIMA) reveals that 47% of traditional hedge funds now engage with digital assets, with 43% noting increased interest in cryptocurrencies from institutional clients.
Since their launch in January, spot bitcoin ETFs have achieved a remarkable cumulative trading volume of $426 billion. Notably, BlackRock's IBIT holds nearly two-thirds of the market share, marking it as one of the most successful ETF launches to date.
The Schwab study surveyed 2,200 individual investors aged 25 to 75 with a minimum of $25,000 in investable assets, including 1,000 who have traded ETFs in the past two years and 1,000 who have not. This data was collected from July 2 to July 20, before the introduction of Ethereum ETFs.
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