Younger People Are 7.5 Times More Likely to Have Cryptocurrencies in Their Portfolios, According to a Bank of America Survey of Wealthy Americans

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Younger, wealthy Americans are 7.5 times more likely than investors 43 and older to have cryptocurrency in their portfolios, according to research from Bank of America. Where do the newest generation of investors see opportunities for investment growth if they lack confidence in stocks? Cryptocurrencies, which are their top option, are alternatives, the bank wrote.

This week saw the publication of Bank of America’s 2022 Private Bank Study of Wealthy Americans. The report highlights the findings of a May–June online survey of 1,052 adults over the age of 21 who had household investable assets of at least $3 million. The respondents are a sample of the nation’s high-net-worth individuals, according to the bank, who also noted that they are not necessarily Bank of America customers.

According to conventional investment wisdom, younger investors should hold more stocks than older investors. However, compared to investors aged 43 and older (55%), the 21 to 42 age group only holds a quarter of their portfolio in stocks.

If the youngest cohort isn’t confident in stocks, where do they see opportunities for investment growth? Alternatives, including cryptocurrencies, which are their No. 1 choice.

“While 29% of younger people said crypto presents a leading opportunity to create wealth, only 7% of the older group agreed. The younger group is generally
more interested in private equity or debt, as well as sustainable or environmental, social and governance (ESG)-related investments,” the report adds.

Bank of America emphasized that age is “the dominant factor when it comes to interest in cryptocurrencies,” elaborating:

While overall usage is low, younger people are 7.5 times more likely to hold crypto in their portfolios and five times more 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 guidance on crypto, compared with 30% of the older group.”