The crypto boom has created wealth for young early adopters and according to a new survey, nearly half of millennial millionaires have at least a quarter of their money in crypto.
CNBC Millionaire Survey Findings
According to the CNBC Millionaire survey, about 47% of millennial millionaires have more than 25% of their wealth in crypto. The survey sampled 750 investors with at least $1 million in investible assets, and showed that more than a third of millennial millionaires have at least half their wealth in crypto. Australian millennials are no different, as we recently reported that aussies are more interested in crypto than real estate.
The younger investors were more intellectually engaged with the idea even though it was new. Older investors and the boomers were largely saying, ‘Is this legit?’George Walper, president of Spectrem Group
Older millionaires are far less likely to invest in crypto due to a lack of interest or an inability to understand it. The survey shows that 83% of American millionaires have none of their wealth in crypto, and only one in 10 keeps more than 10% of their wealth in crypto assets.
Generational Gap Opens Wider on NFTs
The generational divide is at its largest with regards to non-fungible tokens (NFTs). The majority of millionaires say they don’t know what NFTs are, and regarding millennials a third of them are saying they are an “overhyped fad”. The other two-thirds are saying NFTs “are the next big thing”.
Nearly half of millennials surveyed own NFTs, and 40% say they don’t currently own an NFT but have “considered” it. In comparison, 98% of boomer millionaires say they don’t own any NFTs and aren’t considering acquiring any.
US Millionaires Plan To Sell Stocks and Cryptos Before Tax Time
The survey also showed that 69% of US investors with more than US$1 million expect higher taxes under the Biden administration, specifically higher capital gains tax and business tax. This could push investors to sell their investments before the tax hikes come into play. According to the survey, 19% of participants plan to do this.
Businesses Should Be Prepared For New Buyers In The Market
The importance of crypto to young millionaires could shift the wealth management industry as private banks, brokers and wealth management firms scramble to cater to a new, crypto-heavy clientele. Businesses that wish to capute this new market segment must therefore cater to their needs.
We see more and more providers offering access to crypto investing. It’s changing fast.George Walper, president of Spectrem Group
And as younger millennials become home owners, businesses need to adapt to their needs to survive. Some Aussie buyers are even using crypto as house deposits.
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