17% of American millennials own crypto, compared to 9% Gen X and 2% of baby boomers
At the same time, 73% of millennials want their info/advice to come from advisors, indicating a desire for the safety net of traditional financial institutions
Regulated bitcoin - and security tokens - listed on the stock exchange could be the answer to meeting the needs of millennial investors
By: Michael Spiar, Senior Content Writer
Millennials are flocking to bitcoin as their main investment vehicle, more so than any other demographic. In fact, 17% of American millennials own crypto, compared to 9% Gen X and 2% baby boomers (Source: Finder.com).
Why the generational gap?
In a paradoxical twist, the main answer is not having enough money to invest any other way.
Look beyond the simple facts that it’s easier and simpler for millennials to look up a few YouTube videos on bitcoin, find a crypto exchange, open an account and start trading. This lost generation is stuck in the gig economy and simply doesn’t have enough capital to be profitable for traditional brokers or to buy meaningful amounts of stock.
With tokenization, millennials can simply put in $10 or $20 as they have spare cash available and buy fractions of coin at a time. For the generation most likely to Google “should I buy bitcoin” or “how to make money with bitcoin,” it’s just the easiest and most accessible way to get started with investing.
As much as American millennials are one of the most enthusiastic demographics when it comes to cryptocurrencies, it’s important to remember that the overall share - 17% - is actually kind of low. If more were to add their capital to the market, overall liquidity would increase dramatically and possibly fuel the next bitcoin boom.
The other interesting statistic about millennials and investing is that 73% of them want a real, human advisor who can help guide and confirm the research they found online. Which means that perhaps there’s a role for traditional financial institutions to help cash-strapped millennials to invest after all.
If only there was a way for them to list and trade digital assets…
Blockstation, a Canadian FinTech, provides an end-to-end trading platform to traditional stock exchanges, enabling them to list cryptocurrencies like bitcoin and Ethereum in a regulated, licensed environment - complete with 100% insurance on all crypto assets stored in cold storage, offline, segmented vaults assigned to the exchange’s broker-dealers.
The JSE partnered with Blockstation to use its end-to-end, turn-key listing, trading, clearing, settlement and custodial solution to bring fully compliant trading of digital assets to investors around the world.
In the future, the JSE will also list security token offerings (STOs), providing even more opportunities for investors with small amounts of capital - like millennials - to invest in the traditional marketplace.
Is regulated, insured bitcoin the answer to enticing more investors - particularly millennials into the market? Let us know on social media using the hashtag #BlockstationMillennial!
In the meantime: