Millennials, a generation that is heavily weighed down by student debt, lack of savings, and low pay, have the opportunity to rewrite their financial stories. Bitcoin and other cryptos will help to a large extent, according to a panel discussion during this year’s BlockShow summit hosted in Singapore.
That was a major takeaway from the “Millennial investment trends — a new wave of personal finance” panel. This panel comprised of Zac Prince of BlockFi, Aya Kantorovich of FalconX, and Grayscale’s Michael Sonnenshein. They managed to discuss the Millennials’ impact on the future and adoption of digital assets.
Prince from BlockFi highlighted three major bitcoin adoption trends that are extensively linked to millennials and younger investors. The current wealth transfer from the baby boomers to the young through inheritances, the surge of alternative assets, and the shifting preference for everything digital are some of the factors that came up.
In June 2021, alternative assets under management surpassed $10 trillion worldwide, which is up more than 55% compared to 2013 data, according to data provider Preqin. Although most of the shift has happened at the institutional level, Millennials will play an integral role in this market.
The BlockFi CEO believes that crypto will “grow as a share of that alternatives bucket.”
“Crypto-invested Millennials is an insanely valuable group […] These are people who were ahead of this trend.”
In their view, it is just a matter of time before more financial institutions develop onramps to serve these demographics. The head of institutional coverage at FalconX, Aya Kantorovich, added that it is just a matter of accessibility.
While choosing to remain less bullish on the current millennial trends, Kantorovic explained that her company has experienced a huge influx of retail-facing aggregators and payment providers that need good liquidity. That is a clear indicator of growing adoption at the consumer level.
Grayscale’s managing director, Michael Sonnenshein, also highlighted a critical shift in how people, particularly younger generations, view cryptocurrency diversification. Even though many think that diversifying into cryptocurrency is an important decision, diversification within the crypto sector is growing in importance.
Investors are now beginning to look past bitcoin and into other assets with ‘staying power’ like Ethereum and Litecoin. Sonnenshein commented on the growth of Ethereum first or Ethereum only investors, and he thinks that more millennials will continue investing in the crypto sector.