Young investors see crypto as better alternative to US stocks, personal brands: BofA

A new study shows that young investors are increasingly choosing crypto over traditional US stocks, reflecting the generational divide in investment strategies.

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The findings reveal sharp generational divides in attitudes towards investment opportunities; Younger affluent Americans are increasingly turning to alternatives like crypto and private equity, while older generations are sticking with traditional stocks.

In its 2024 Wealthy Americans Survey, BofA highlights that younger investors (especially Gen Z and Millennials) are prioritizing real estate (31%), cryptocurrencies (28%) and private equity (26%) as more promising growth paths than personal growth. company/brand (24%) or direct investment in companies (22%).

In contrast, older generations over 44 predominantly prefer US stocks (41%) and real estate (32%).

Biggest opportunities for growth | Source: Bank of America

Katy Knox, president of Bank of America Private Bank, said the market is going through a period of “major social, economic and technological change as well as the largest intergenerational transfer of wealth in history.”

While older generations believe their children share their philanthropic values, younger participants appear to openly express the disconnect by advocating for more effective giving strategies.

As wealth shifts to a younger demographic, these different perspectives could lead to new investment trends and encourage advisors to adapt their strategies to meet the evolving needs of this emerging class of investors, the report notes. The study surveyed U.S. adults with at least $3 million in investable assets.