Cryptocurrency, Investing–A new study has confirmed that millenials are the largest supporters of cryptocurrency, in overwhelming fashion. In addition, the survey holds some interesting results for the landscape of institutional investment, and the room cryptocurrency has left to grow in the event of wider availability.
According to the data compiled by investment platform eToro and published on Feb. 19, 43 percent of millennial online traders have more confidence in the crypto markets than the traditional stock market. With Wall Street banks predicting a greater than 50 percent chance of recession within the next several years, it comes as no surprise that young investors are feeling way of stocks and securities–particularly in light of 2008’s market collapse.
The millennial investor confidence in cryptocurrency follows what has been an overwhelming bear market for the industry, with most coin prices down 80 – 90 percent. However, with the prediction of Bitcoin Exchange-Traded Funds becoming a reality in 2019, there is growing hope for institutional investment into the industry, a presence most young traders were preferred.
Of the millennials polled who currently trade in cryptocurrency, 93 percent said they would invest more into digital assets if traditional financial institutions created an option on their exchanges. In addition, 71 percent of millennials who do not currently invest or trade in cryptocurrency stated that they would be willing to do so if offered the option by traditional brokerages–a telling point for where the sway of the industry lies.
Guy Hirsch, Managing Director of eToro, commented on the massive shift in trust taking place in the marketplace as older investors give way to the younger millennial generation,
“Immutability is native to blockchains and that makes real-time audit to be sensible and cost-effective and that is why millennials and Gen X perceive crypto exchanges as less likely to be subject to manipulation and less likely to be a place where bad actors get rewarded with taxpayer money.”
Millennial investors were also more willing to explore new avenues for cryptocurrency integrations into existing models, with 43 percent of those polled stating they would be interested in allocating digital assets into their 401(k) and retirement plans. An even greater proportion would at least like to receive the option of digital assets in their retirement funds, with 74 percent saying they would prefer to be given the choice by traditional firms.
Two major developments since the start of 2019 might sway the industry of cryptocurrency in greater favor with young investors. The United States Securities & Exchange Commission now appears more willing to approve a BTC ETF, opening the door for more regulated cryptocurrency products and the possibility of institutional investment. In addition, the announcement by JP Morgan Chase to create the JPMCoin for cross-border transactions, sheds light on the growing level of crypto acceptance currently taking place on Wall Street.
With more millennial and younger investors entering the market, traditional financial outlets will be force to modernize to meet their needs. Digital assets, in the form of direct cryptocurrency exchanges or ETFs, will likely be the next major step for these established institutions.