Bank of America’s Survey of Wealthy Americans: Younger People Are 7.5 Times More Likely to Hold Crypto in Their Portfolios

Bank of America has found that younger wealthy Americans are 7.5 times more likely to hold crypto in their portfolios than investors aged 43 and older. “If the youngest cohort isn’t confident in stocks, where do they see opportunities for investment growth? Alternatives, including cryptocurrencies, which are their No. 1 choice,” the bank wrote.

Bank of America released its 2022 Private Bank Study of Wealthy Americans this week. The report highlights the results of an online survey, conducted from May to June, of 1,052 people who were over the age of 21 with household investable assets of more than $3 million. The bank noted that the respondents are a nationally representative sample of the U.S. high-net-worth population and not necessarily clients of Bank of America.

“Conventional investment advice suggests that younger investors hold more stocks, not fewer, than older investors. Yet the 21 to 42 age group holds just a quarter of their portfolio in stocks, compared with 55% of investors aged 43 and older,” the report details, noting:

If the youngest cohort isn’t confident in stocks, where do they see opportunities for investment growth? Alternatives, including cryptocurrencies, which are their No. 1 choice.

“While 29% of younger people said crypto presents a leading opportunity to create wealth, only 7% of the older group agreed. The younger group is generally
more interested in private equity or debt, as well as sustainable or environmental, social and governance (ESG)-related investments,” the report adds.

Bank of America emphasized that age is “the dominant factor when it comes to interest in cryptocurrencies,” elaborating:

While overall usage is low, younger people are 7.5 times more likely to hold crypto in their portfolios and five times more likely to say they understand it quite well.

Furthermore, the survey found that “Half of the younger group said they turn to social media for guidance on crypto, compared with 30% of the older group.”

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