According to a report, nearly 39 percent of millennials own cryptocurrencies, which is higher than the percentage of those who own mutual funds and roughly equal to the number of millennials who own individual stocks.
In the study conducted by the investment firm Alto, millennials between the ages of 25 and 40 who own cryptocurrencies are likely to include them in their retirement portfolio. Over 70% of millennials who own cryptocurrency and an individual retirement account (IRA) have crypto in their IRA.
A quantitative online survey of 2,000 US consumers was used to compile the report, titled “How Millennials See Their Financial Future.”
There were 1,200 millennials (ages 25-40), 400 Gen X (ages 41-56), and 400 baby boomers (ages 57-64) among the participants. All participants had a minimum of $2,500 in investable assets, a minimum household income of $35,000, and were not yet retired.
According to Alto founder and CEO Eric Satz, current market conditions make it difficult for millennials to consider investing.
“Millennials find it difficult to invest for the future because they are struggling to afford the present in a world of conspicuous consumption, soaring living costs, and mounting student loan debt.”
Meanwhile, the survey found that lack of knowledge was a barrier to investing in alternative assets such as cryptocurrencies across all generations polled.
Due to a lack of knowledge, many people believe that alternative investments are only available to wealthy and institutional investors. A large proportion of those surveyed believed that minimum investments and fees would prevent them from investing in alternative assets.
According to the study, 49 % of millennials believe you need to be “very wealthy” to invest in alternative investments, and another 63 percent believe “alternative investments will have high fees.”
Furthermore, consumers are more likely to associate alternatives with the same or higher risk than stock market investing. For example, 51% of millennials believe that alternative investments are riskier than stock market investments.