Since the advent of cryptocurrency, millennials, along with younger GenX and Gen Z members, have largely driven the markets. However, the introduction of exchange-traded funds (ETFs) is now changing this dynamic, as it is attracting more participation from baby boomers, who are considered the wealthiest demographic globally.
With an estimated $68 trillion in assets under their control in the United States alone, baby boomers have traditionally been heavily invested in equities and real estate. However, they have been underweight in the crypto industry. The recent availability of Bitcoin (BTC) ETFs through half of the investment firms managing their wealth in the U.S. is bringing a new wave of experienced investors into the market.
The approval of Bitcoin ETFs has already attracted over $15 billion in investments as of June, signaling a growing belief in Bitcoin and the broader crypto industry. This mainstream access is enabling boomers to easily invest in Bitcoin through products offered by large asset managers and banks, bypassing the need for diversification on different exchanges.
Research suggests that boomers are increasingly interested in cryptocurrencies due to their fixed supply and strong performance over the last decade. They are seen as more diligent investors compared to younger generations, spending more time on due diligence before making investment decisions. This focus on technical factors rather than reputation could lead to better investment outcomes.
Galaxy Digital CEO Mike Novogratz has expressed optimism about Bitcoin surpassing gold’s market capitalization in the future, thanks in part to investments from boomers. The intergenerational wealth transfer expected in the coming years is likely to drive the next market cycle, with estimates suggesting that millennials will hold significantly more wealth by 2030.
Boomers are poised to be a significant force in the crypto industry due to their wealth, late entry into the market, and informed investment approach. Their emphasis on stability and thorough research is expected to bring a sense of maturity to the industry, steering away from risky investments towards more stable assets.
Overall, the growing interest from boomers, the development of new altcoin ETFs, and the economic transfer of wealth in the coming years are all factors that will contribute to the continued growth of the crypto market.