The majority of millennial millionaires hold the bulk of their assets in cryptocurrencies, and they say they aim to purchase more crypto next year in spite of the recent price drops, according to a survey carried out by the US broadcaster CNBC.
As much as 83% of millennial millionaires own crypto. About half of them plan to add to their crypto investments within the next year. Only 6% of those surveyed said they’d decrease their investments.
There “is a big difference between different generations of wealth,” said George Walper, president of market research and consulting firm Spectrem Group which conducted the survey with CNBC.
Some 53% of the millennial millionaire group have at least half of their wealth in crypto, and almost 33% of the members of this group have allocated at least 75% of their assets to bitcoin (BTC), ethereum (ETH) and other coins, according to CNBC.
These numbers put the group in stark contrast with older generations of millionaires.
Among baby boomer millionaires, only 4% own crypto, and among their Generation X counterparts this share stands at 25% – as indicated by the results of the poll that targeted investors whose investible assets exceed USD 1m, not including primary residences.
The age gap between millennial crypto investors and older generations of millionaires who remain primarily attached to legacy finance spurs a new dilemma for wealth management firms which may need to diversify and upgrade their offers to lure fresh investors from the ranks of millennials, as indicated by the survey.
“I’m not sure the wealth management industry has recognized that they really need to think of these as completely different generations,” Walper said. “Most firms were hoping to ignore it. But millennial millionaires are not going to just ‘grow out’ of crypto.”
At the same time, millennial millionaires seem to grow accustomed to the high price volatility that is inherent to cryptocurrencies, according to the firm’s president.
“They seem to be comfortable with the volatility,” Walper said.