Young Investors Shift to Advisors Who Embrace Cryptocurrencies, New Report

Zerohash, a leading crypto and stablecoin infrastructure provider, published a report that revealed that about a third of young, wealthy investors in the United States are actively looking to get exposure to cryptocurrencies.

Younger, Wealthier Investors Are Moving Their Money Toward Crypto-Savvy Advisors

Titled “Crypto and the Future of Wealth“, the survey polled 500 U.S.-based investors aged 18 to 40, 61% of whom already hold some digital assets.

These participants, with annual incomes ranging from $100,000 to $1 million, represent a key demographic for wealth managers.

35% of respondents have moved capital away from advisors who do not offer digital asset services.

Of this group, 55% reallocated between $250,000 and $1 million to advisors with demonstrated expertise in the crypto space.

This shift is reflected in current portfolio allocations. Cryptocurrencies now constitute a significant portion of these investors’ holdings; at 44%, digital assets are on par with real estate and exceed allocations to alternative investments and private equity.

Institutional Adoption Is Fueling Confidence, Forcing Wealth Managers to Adapt

The growing comfort with digital assets among this demographic is partially attributed to increased institutional participation.

Established financial entities, including BlackRock, Fidelity, and the Trump Family have entered the space through various avenues such as exchange-traded funds (ETFs) and direct Bitcoin holdings. While some have launched exchange-traded funds (ETFs), others have held Bitcoin directly or increased their holdings of proxy stocks trading on public exchanges.

This institutional validation has had a correlative effect on investor behavior.

According to the Zerohash report, 84% of respondents plan to grow their crypto holdings within the next year, while 46% confirmed that they plan to “significantly” increase their allocations.

While Zerohash’s survey gives a snapshot of the future of America’s investment landscape, it only corroborates what appears to be a global trend.

In October, Avaloq, a Swiss software firm that serves several private banks and wealth managers, noted in a separate report that 63% high-net-worth individuals in the United Arab Emirates (UAE) are switching wealth managers or considering doing so, partly because their questions about crypto continue to go unanswered.

According to Avaloq’s report, 39% of wealthy clients in the UAE already hold crypto.
However, only 20% of these people do so via traditional wealth managers. Private banks and wealth managers within the region are now rushing to offer crypto services and expertise, or they risk losing a significant portion of their clientele.

As global trends continue to shift, the clock is now ticking for traditional wealth managers. Growing institutional demand is driving retail adoption, and for many, getting acquainted with the fledgling space could be the key to survival.