Millennial millionaires most bullish on crypto, survey finds

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Millennial millionaires are the most optimistic subset of millionaires when it comes to crypto, according to a new CNBC survey. Millennials hold a greater share of their wealth in cryptocurrencies compared to any other class of millionaires and have said they plan to add more to their crypto investments next year. This indicates a shift from more traditional forms of investing towards digital assets as the primary vehicle for investment.

Millennials Make Millions From Crypto

The CNBC survey found that millennial millionaires were more likely to put more of their wealth into crypto. In fact, around 53% of all Millennial millionaires currently own around 50% of their wealth in cryptocurrency. These investors were those who had at least $ 1 million in investable assets, with the exception of primary residences. Of all Millennial millionaires, 83% said they actually owned cryptocurrency.

Related reading | Investors take refuge in Bitcoin as inflation rises

The results of the survey also showed that a significant portion of these investors made their wealth by investing in cryptocurrencies and these investors planned to invest more money in crypto in 2022. 48% of respondents said they plan to increase their crypto holdings in the following year, while 39% said they plan to maintain their current holdings.

Total crypto market capitalization at $ 2.16 trillion | Source: Total crypto market capitalization on TradingView.com

About a third of the total investors surveyed admitted to having at least 75% of their total wealth in bitcoin, ethereum, or other cryptocurrencies. These investors remain indifferent to the downtrend in the market. Instead of looking to avenues baby boomers would use for investment, cryptocurrencies are the gold standard for millionaire millennial investors.

This move towards crypto is even more evident in the Generation Z generation moving to an economy where crypto investments are the first point of contact as a new investor.

Not afraid of volatility

One of the disheartening factors for most crypto investments has been the volatility associated with these digital assets. Major price swings, up or down, have largely characterized the space since its inception, but Millennials and Gen Z investors don’t seem to mind fluctuating prices.

George Walper, chairman of Spectrum Group, which conducted the survey in conjunction with CNBC, noted that younger generation crypto investments have shown “a big difference between different generations of wealth.” In the survey, only 6% of millennial millionaires surveyed said they plan to cut their crypto holdings.

Related reading | Robinhood’s New Feature Lets Users Gift Crypto to Family and Friends

In contrast to this, only 4% of Baby Boomers own cryptocurrency and over 75% of Gen X investors own no crypto. The difference here is glaring and will affect how wealth managers deal with their clients in the future, the report notes.

As for volatility, millennial millionaires don’t care at all given the returns they’ve made from it. “They seem to be comfortable with volatility,” Walper said.

Featured image from Travel.Earth, chart from TradingView.com

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