Schwab Report Shows Crypto ETF Adoption May Reach Parity With Bond ETFs

Jimmy Aki
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On November 6, Schwab Asset Management released a new report showing a major shift in investor interest. The study found that nearly half of current exchange-traded fund (ETF) investors plan to buy a crypto ETF.

Millennial Investors Show Greater Interest in Crypto ETFs

In its latest survey report titled ETFs and Beyond, Schwab found that 52% of respondents intend to invest in U.S. equities. 45% expressed interest in buying a crypto ETF, placing it on the same level of interest as the U.S. Bond ETFs.

Bond ETFs are traditionally known as lower-risk investment options, often backed by government or highly rated corporate debt. They have long been a core building block for portfolios seeking stability.

The survey that polled 2,000 individual investors of ages between 25 and 75 found that half of the respondents had either bought or sold ETFs within the last two years, and each had at least $25,000 in investable assets.

This means the results are sourced from actively participating retail investors rather than casual observers.

A closer examination of the data reveals a notable generational divide. About 57% of Millennial investors (born between 1981 and 1996) reported interest to invest in crypto through an ETF while 41% of Gen X investors (born between 1965 and 1980) gave the same response.

This signals more than just curiosity. It shows that younger investors are far more comfortable with digital assets as part of long-term financial planning. The older the demographic becomes, the more cautious the stance grows.

For better context, the survey revealed that Baby Boomers investors (born between 1946 and 1964), reported the lowest interest in a crypto ETF as only 15% plan to invest.

Bloomberg senior ETF analyst Eric Balchunas reacted to the findings with notable surprise at how closely crypto ETF interest is now aligned with Bond ETFs.

He pointed out that the bond market is historically large and well-established.

Bond ETFs currently represent around 17% of total ETF assets under management (AUM).

Meanwhile, crypto ETF products make up only about 1% of that market.

Are Crypto ETFs More Appealing Than DAT Shares?

The rise in crypto ETF demand is clear. But digital asset treasury (DAT) firms are also growing in number.

Investors sometimes buy shares in these companies because they expect the value of the firm’s crypto holdings to lift its stock price over time.

However, that model is not guaranteed. On November 5, Bitwise Chief Investment Officer Matt Hougan noted that DAT firms need to provide more strategic value than simply holding crypto.

Hogan argued that if the company’s main activity is only buying and storing Bitcoin, investors may as well just buy a Bitcoin ETF directly.

The reasoning is practical. A crypto ETF is easy to access and more cost-efficient. It can provide exposure to multiple digital assets rather than relying on the performance of one company.

Most importantly, the risk is clearer and more limited. There is no business risk, no corporate management risk, and no operational failure to consider.

DAT shares, on the other hand, depend on both the crypto market and the company itself. If the company mismanages funds, performs poorly, or fails to execute, the investor can lose value even if the Bitcoin price rises.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.