More ETF Investors Eye Crypto in 2024
Nearly half of ETF investors plan to invest in crypto ETFs in 2024, driven by growing confidence and millennials leading the shift.
A recent survey by Charles Schwab shows that 45% of ETF investors plan to invest in crypto ETFs in 2024. The survey, conducted by the major US brokerage managing over $9 trillion in client assets, highlights a growing interest in digital assets. Millennials are leading this trend, showing a higher risk tolerance and shifting their portfolios toward crypto and tech investments.
In 2023, only 38% of ETF investors expressed plans to invest in crypto ETFs, indicating a rise in confidence this year. Bullish sentiment among ETF investors has increased as the crypto market gains traction. Despite this, US equities remain the top choice, with 55% of respondents planning to invest in traditional stocks in 2025.
The survey reveals generational differences in investment strategies. 62% of Millennials intend to invest in crypto ETFs, reflecting a higher appetite for risk. Gen X investors also show interest, with 44% planning to enter the market. Meanwhile, only 15% of Boomers are interested in these products, indicating a conservative approach to investment.
Millennials are more inclined to customize their portfolios and invest according to personal values. They show greater interest in direct indexing, which allows them to tailor investments to their individual preferences. This approach is less popular among older generations, who prefer traditional ETF products.
The growing interest in crypto ETFs is supported by the expanding ETF market. Recent launches of US spot Bitcoin and Ethereum ETFs have seen steady growth in holdings. These ETFs offer a regulated way to gain crypto exposure, making them appealing to a wider audience.
BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Bitcoin ETF (FBTC) are among the top 10 ETF launches this year, according to Bloomberg. Their success underscores the rising demand for regulated investment vehicles in the crypto space.
With more investors seeking to diversify their portfolios, the trend suggests a shifting landscape for ETFs. Bonds remain stable, with 44% of respondents planning to invest in bond ETFs. This stability contrasts with the volatile nature of the crypto market, highlighting a balanced investment strategy among ETF holders.
Overall, the survey illustrates a changing mindset among ETF investors, driven by a growing acceptance of digital assets and the launch of new crypto products. As the market evolves, crypto ETFs could become a mainstream choice for those looking to diversify into emerging asset classes.
