A generational shift in investment choices is ongoing among investors in the United States. According to the 2024 Study of Wealthy Americans recently published by the Bank of America, young investors are diverging from the traditional investment paths favoured by older generations.
The study, which surveyed U.S. adults with at least $3 million in investable assets, revealed that younger investors—primarily Gen Z and millennials—prioritize real estate (31%), cryptocurrencies (28%), and private equity (26%) as key growth avenues. In contrast, older investors—those aged 44 and above—continue to favour U.S. stocks (41%) and real estate (32%).
Notably, as the first members of Generation X near their 60th birthdays, a substantial transfer of wealth is in progress. Bank of America Private Bank president Katy Knox noted that the market is currently experiencing a period of “great social, economic, and technological change” alongside the largest generational transfer of wealth in history.
This shift signals a significant change in the investment landscape, with cryptocurrencies, once considered a niche market, now increasingly accepted as a mainstream investment choice.
The study also pointed out that as wealth shifts to a younger demographic, new investment trends are starting to show due to differing perspectives. For instance, while older generations believe their children will share similar philanthropic values, younger respondents signal a disconnect, advocating for more impactful and strategic giving. The study suggested that financial advisors may need to adjust their strategies to cater to the evolving needs of this emerging class of investors.
The study’s findings are consistent with data from South Korea, where younger investors are also embracing cryptocurrencies. According to reports from Upbit and Bithumb, 185 South Korean investors in their 20s hold digital assets worth over $750,000 each. At the end of 2023, 3,759 South Koreans had crypto accounts with balances exceeding ₩1 billion ($750,000), with younger investors forming the third-largest group. Their investments primarily focus on major cryptocurrencies such as Bitcoin, with an average holding value of ₩967.2 billion ($3.91 million per individual).
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