A new study found that 83% of millennial millionaires possess cryptocurrency
According to the president of CNBC's poll partner Spectrem, the generational divide in investment might pose a problem for wealth managers.
Institutional crypto investments and young people becoming millionaires have become commonplace headlines in 2021.
More than half of millennial millionaires want to continue investing in crypto in 2022, according to a new CNBC survey of affluent millennials. Investors with assets of $1 million or more were polled in the survey, and 83% of the millennial millionaires polled said they had invested in cryptocurrency.
More than half of the people surveyed stated they have at least 50% of their portfolio invested in cryptocurrency. Some 23% have invested at least 75% in crypto assets. Many people may be surprised by the poll results, but those who have been following the crypto boom in 2021 are aware of how a generation of TikTok investors won millions of dollars on investments in meme currencies.
An enormous age disparity in investment was also seen in the CNBC poll. On the one hand, millennials are spending up to 50% of their money in crypto, whereas only 4% of the older age and only one-fourth of Gen X have invested in digital assets.
New generation interest in crypto could be a concern for wealth managers according to Spectrem Group’s George Walper, who conducted a study for CNBC. He thinks that these established managers would have to reconsider their strategy for dealing with these new investors. He went on to say:
I’m not sure the wealth management industry has recognized that they need to think of these as completely different generations. Most firms were hoping to ignore it. But millennial millionaires are not going to just grow out of crypto.
George Walper, president of Spectrem Group
According to a recent survey, the younger generation is more prepared to take chances with crypto than traditional investments. According to a recent survey, 48 percent of millennial millionaires plan to increase their cryptocurrency investments, 38 percent plan to hold, and only 6 percent plan to decrease their crypto exposure in 2017.
Australia’s use of cryptocurrencies has grown by 10% in the last year despite a recent spike in the number of crypto-millennial billionaires in the United States. IRCI 2021, a study of 2000 persons by the Independent Reserve, indicated that Australians’ share of the cryptocurrency market had expanded to 28.8%, up from 18.4% in 2020.
