Bank of America Survey: Young People 7.5x More Likely to Hold Crypto
Young Americans aged between 21 and 42 are 7.5 times more likely to hold crypto in their portfolios than investors over 43, a new survey from Bank of America shows.
According to the survey, younger Americans with money to invest are also less interested in stocks than older investors, with the younger cohort instead viewing crypto and other so-called alternative investments as their “No. 1 choice.”
An alternative investment normally refers to investments in any other asset than stocks, bonds and cash. This investment category has become increasingly popular in recent years, as many investors have seen the stock market as overvalued and risky, while bank savings have paid out interest rates far below the rate of inflation in most Western countries.
“While overall [crypto] 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,” the bank commented, stressing the importance of age when it comes to interest in crypto investing.
In terms of where young investors go to find information about crypto investment opportunities, the bank said social media is the most popular. “Half of the younger group said they turn to social media for guidance on crypto, compared with 30% of the older group,” the BofA survey said.
Meanwhile, the survey also found that a whopping 75% of investors between the ages of 21 and 42 do not believe it is possible to achieve “above-average returns” with a traditional portfolio consisting solely of stocks and bonds.
Instead, the youngest group of investors are seeking to improve their returns with alternatives, including private equity, commodities, real estate, and – as already mentioned – crypto.
The findings were published in Bank of America’s 2022 Private Bank Study of Wealthy Americans that was released this week. The survey was based on answers from 1,052 high-net-worth individuals in the US.
In the past, Bank of America has shown some interest in crypto at the corporate level, having participated as a strategic investor in blockchain infrastructure platform Paxos' Series D round of funding.
Last year, the major bank also made some headlines when it published its first official piece of investment research on the crypto market titled “Digital Assets Primer: Only the first inning.”