83% of millennial millionaires own cryptocurrencies and most have the bulk of their wealth in crypto, says the CNBC Millionaire Survey. About 50% have at least 50% of their wealth in cryptocurrency, and nearly a third have at least three-quarters of their wealth in bitcoin. This is followed by ether and other types of cryptocurrencies. The CNBC Millionaire Survey polls investors with investable assets of $1 million or more.
More than three-quarters of Gen X investors don’t own any digital asset, and It highlights that only 4% of baby boomers hold any cryptocurrency. George Walper, president of Spectrum Group, which conducted the survey for the media house, pointed out the big difference between different generations of wealth. The survey reveals that older generations of millionaires are still largely skeptical of crypto and its future. But for younger investors, cryptocurrencies have become the primary source of wealth creation.
Over the next 12 months, around 48% of millennial millionaires plan to add cryptocurrencies to their holdings. And 39% plan to maintain their current crypto levels. The survey says 6% plan to reduce their digital asset investments over the next year. It acknowledges that as many millennials and Gen Z investors become millionaires, cryptocurrency is likely to remain central to their investing. And this may be a new dilemma for wealth management firms.
Walper is not sure whether the wealth management industry recognizes this ‘new reality’. “I’m not sure the wealth management industry has recognized that they need to think of these as completely different generations. Most firms were hoping to ignore it. But millennial millionaires are not going to just ‘grow-out’ of crypto.”
The expert believes many wealth management firms are hesitant to add crypto to their investing platforms. This can be attributed to the associated risks, such as high volatility and legal issues, etc. But as an increasing number of crypto financial products, including crypto-based ETFs, Walper says more firms can now start offering crypto products.