The year 2021 has been promising to crypto acceptance, with institutional crypto investments and millennials becoming millionaires becoming common headlines. According to a new CNBC survey, the majority of millennial millionaires have invested a large portion of their wealth in digital assets and want to continue doing so in 2022.
The survey questioned investors with $1 million or more in assets, and 83 percent of the millennial millionaires polled said they had made cryptocurrency investments.
Over half of the respondents to the study — 53% — indicated they have at least 50% of their portfolio in cryptocurrency. Almost a third of those polled have put at least three-quarters of their net worth into crypto assets. While the survey findings may surprise some, those who followed the crypto bubble in 2021 will recall how a generation of TikTok investors won millions of dollars on meme currency investments.
The increased interest of the new generation in the nascent crypto market, according to George Walper, president of Spectrem Group, which conducted the study for CNBC, could prove to be an issue for wealth managers.
Survey reveals massive age gap
In terms of investing, the CNBC survey found a significant age gap. On the one hand, millennials are investing up to 50% of their money in cryptocurrency, but just 4% of the older generation has invested in crypto, and only 25% of GenX owns digital assets.
The study also revealed that, rather than investing in traditional markets, the younger generation is prepared to take more chances with cryptocurrency. According to the survey, 48% of millennial millionaires plan to increase their crypto investments in 2022, while 38% plan to keep and only 6% aim to minimize their crypto exposure.
Apart from a boom in crypto millennial millionaires in the United States, crypto use in Australia has increased by 10% in the last year. A recent survey in Australia reveals that women who invested in crypto have doubled their portfolio in 2021, and more than a quarter of users consider buying Christmas gifts related to crypto.