A recent survey conducted by financial services giant Charles Schwab has revealed that U.S. investors are increasingly interested in investing in exchange-traded funds (ETFs) that hold cryptocurrencies. The survey found that 45% of respondents are planning to invest in crypto through ETFs in the next year, up from 38% the previous year. This surge in interest has surpassed demand for traditional assets such as bonds and alternative investments, with only U.S. equities ranking higher at 55%.
Interestingly, among millennial ETF investors, cryptocurrencies are the preferred asset class, with 62% planning to allocate funds to this sector. This is higher than the percentage of millennials planning to invest in U.S. stocks, bonds, and real assets like commodities. In contrast, boomer ETF investors showed significantly less interest in digital assets, with only 15% expressing plans to invest.
Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, described the survey results as “pretty stunning,” highlighting the growing popularity of cryptocurrencies among investors. The implications of this survey could potentially benefit the emerging market of crypto-focused ETFs, which are marketed as a way to diversify traditional investment portfolios consisting of stocks and bonds.
While U.S.-listed spot bitcoin ETFs have seen significant inflows of nearly $19 billion since their launch in January, spot ether ETFs have struggled to attract investments. In fact, net outflows from the incumbent Grayscale Ethereum Trust have outweighed inflows into newer ether ETFs, resulting in a total net outflow of over $500 million for the group, according to Farside Investors.
Overall, the survey results indicate a growing interest in cryptocurrencies among U.S. investors, particularly in the form of ETFs. This trend could potentially drive further growth in the crypto market and provide new opportunities for investors looking to diversify their portfolios.
