Investing in Cryptocurrency ETFs is Better than Investing in Traditional ETFs If You Think So You Might Be a Millennial

What happened?
A survey conducted by asset management company Charles Schwab has revealed that cryptocurrencies have become the second most favored asset class among ETF investors.
In other words, what ETFs to buy? In addition to US stock ETFs, many investors are also willing to invest in cryptocurrency ETFs. 45% of ETF investors plan to invest in cryptocurrency ETFs, highlighting the importance of cryptocurrency ETFs in investors’ minds and indicating the growing demand for such products.
Eric Balchunas, an ETF analyst at Bloomberg Intelligence, pointed out that nearly half of the Charles Schwab respondents stated that they plan to invest in cryptocurrency ETFs, a higher proportion than bonds, international markets, or alternative investment categories.
Millennial investors prefer cryptocurrency ETFs.
Cryptocurrency ETFs have become the new favorite of US ETFs, as shown by the survey chart, where the position of cryptocurrencies in investors’ ETF purchases continues to rise, even surpassing bond and real estate ETFs to become the second most popular investment category.
According to the survey, as many as 62% of respondents expressed an interest in investing in cryptocurrency ETFs. Among millennial ETF investors, cryptocurrencies have surpassed stocks and become the preferred asset, reflecting the high interest and acceptance of cryptocurrencies among the younger generation.
Since 2024, a total of 13 cryptocurrency ETFs have made it onto the “Top 25 ETF Issuance List with the Largest Annual Inflows,” further proving the increasing demand for cryptocurrency ETFs in the market.
Among them, Bitcoin ETFs have received significant inflows. For example, BlackRock’s Bitcoin Spot ETF has received nearly $21 billion in inflows as of August, followed closely by Fidelity with inflows of nearly $10 billion. In addition, ARK 21Shares and Bitwise also received inflows of $2 billion each.
Ethereum ETFs are not far behind, attracting over $1 billion in inflows.
In addition to Bitcoin ETFs, Ethereum Spot ETFs in 2024 have also performed well.
The iShares Ethereum ETF has performed the best among similar products, attracting over $1 billion in inflows and becoming the leader in Ethereum ETFs.
According to James Seyffart, an analyst at Bloomberg Intelligence, Bitcoin Spot ETF options are expected to launch in the first quarter of 2025 in the United States, which will further drive demand for the product.
With the launch of Bitcoin Spot ETF options in the United States, institutional investor adoption is expected to increase significantly, potentially bringing “enormous upside potential” for Bitcoin holders.
However, despite the high demand for cryptocurrency ETFs in the market and the strong desire from investors, Charles Schwab’s survey also showed that cryptocurrency ETF-related products have not yet been launched.
Nate Geraci, President of ETF Store, expressed surprise and disbelief on the X platform, stating, “Charles Schwab has this data and yet they still haven’t launched a Bitcoin Spot ETF. It’s truly incredible.”
As cryptocurrency ETFs continue to gain popularity, the market is eagerly awaiting large asset management companies such as Charles Schwab to quickly follow this trend and further meet investor demands.
Reference:
cointelegraph
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Charles Schwab