About 39% of millennials own cryptocurrencies, higher than the percentage of those owning mutual funds and about equal to the number of millennials who own individual stocks, according to a report.
A new study by investing firm Alto, finds that millennials aged 25 to 40, who own cryptocurrencies, are likely to include them in their retirement portfolio.
Over 70% of millennials who own crypto and an individual retirement account (IRA), hold crypto in an IRA.
Study conducted on 2000 US Consumers
The report called “How Millennials See Their Financial Future,” was compiled by conducting a quantitative online survey of 2,000 U.S. consumers.
Of the participants, 1,200 were millennials (ages 25–40), 400 were Gen X (ages 41–56), and 400 were baby boomers (ages 57–64). All participants had at least $2,500 in investible assets, a minimum household income of $35,000 and had yet to retire.
Bear markets hinder investments
Alto founder and CEO Eric Satz said that the current conditions are making it hard for millennials to consider investing.
"In a world of conspicuous consumption, soaring living costs, and mounting student loan debt, millennials find it difficult to invest for the future because they are struggling to afford the present," Satz said.
Inadequate knowledge a cause of worry
Meanwhile, the survey also points out that a lack of knowledge was a hindrance in investing in alternative assets like cryptocurrencies among all generations that were surveyed.
Limited knowledge has created the perception that alternative investments are exclusively limited to the wealthy and institutional investors. A large number of those surveyed assumed that minimum investments and fees would hinder them from investing in alternative assets.
Millennials believe only the rich can invest in cryptos
The study showed that 49% of millennials believed you have to be “very wealthy to invest in alternative investments,” and another 63% believed that “alternative investments would likely have high fees.”
Additionally, consumers are likely to associate alternatives with equal or greater risk than stock market investing.
For example, 51% of millennials hold the view that alternative investments are riskier than investing in the stock market.
