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Millennial millionaires are the subset of millionaires most bullish on crypto, a new CNBC survey has found. Millennials hold more of their wealth in cryptocurrencies compared to any other millionaire class and have said they plan to add more to their crypto investments next year. This indicates a move from more traditional forms of investments towards digital assets as the major investment vehicle.
Millennials Making Millions From Crypto
The CNBC survey found that millennial millionaires were more likely to put more of their wealth in crypto. In fact, about 53% of all millennial millionaires currently hold about 50% of their wealth in cryptocurrencies. These investors were those who had at least $1 million or more of investible assets with the exception of primary residences. Of all millennial millionaires, 83% said that they actually held crypto.
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Findings from the survey also showed that a significant portion of these investors made their wealth from investing in cryptocurrencies and these investors were planning to put more money into crypto in 2022. 48% of the polled respondents said that they planned to increase their crypto holdings in the next year, while 39% said they planned to maintain their current holdings.
Crypto total market cap at $2.16 trillion | Source: Crypto Total Market Cap on TradingView.com
About a third of the total polled investors admitted to having at least 75% of their entire wealth in either bitcoin, ethereum, or other cryptocurrencies. These investors remain unfazed by the market downtrend. Instead of turning to avenues Baby Boomers would use for investments, cryptocurrencies are the go-to for millennial millionaire investors.
This shift towards crypto is even more evident in the Gen Z generation who are graduating into an economy where crypto investments are the first point of contact as a new investor.
Not Scared Of Volatility
One of the discouraging factors for most when it comes to crypto investments has been the volatility that is associated with these digital assets. Major price swings either up or down have largely characterized the space since its inception but millennial and Gen Z investors do not seem to mind the fluctuating prices.
George Walper, president of Spectrum Group, which carried out the survey in conjunction with CNBC, noted that crypto investments by the younger generation have demonstrated “a big difference between different generations of wealth.” In the survey, only 6% of millennial millionaires polled had said they were planning to reduce their crypto holdings.
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In contrast to this, only 4% of baby boomers are said to hold cryptocurrencies with more than 75% of Gen X investors not owning any crypto at all. The difference here is stark and will affect the way wealth managers cater to their clients going forward, the report noted.
As for the volatility, millennial millionaires do not mind it at all given the returns that they have gotten from. “They seem to be comfortable with the volatility,” Walper stated.
Featured image from Travel.Earth, chart from TradingView.com