Crypto: Bitcoin ETFs particularly appeal to younger investors, according to this study

The fashion for ETFs. Bitcoin ETFs have marked a turning point in the adoption of cryptocurrencies for institutional players, but also for individuals. These exchange-traded funds have allowed many people to access the BTC market without having to buy digital assets directly, and according to a recent study, it was mostly young people who were sensitive to the arguments of BlackRock, Fidelity, and Grayscale. Let’s see it together.

Young people, the first fans of ETFs

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According to a study conducted by the Financial Times and published in recent days, ETFs in general are particularly popular with young investors in the United Kingdom, where the study in question took place. In fact, nearly 60% of people aged 18 to 34 have invested in ETFs in the last 12 months, while this figure drops to only 27% for investors aged 55 and over.

Low-income investors and women are also underrepresented among those with an interest in these products in general. For the authors, the reasons are multiple, and here is one of their conclusions:

“A sophisticated segment of younger, self-reliant investors are embracing ETFs for the benefits of intraday trading and for the cost-effectiveness of the structures in question. As for the large investor base that does not own ETFs, it can be argued that they are held back by a lack of knowledge on the subject.”

Miranda Seath, Head of Market Data – Source: Financial Times

ETF_V4_Exchange_Traded_Found_11 — ETFs have charmed young investors, 60% of whom have already taken action

A lack of knowledge among the elderly

This lack of knowledge is reflected in the following figure, with almost a third of UK investors aged 55 and over having never heard of ETFs. This ignorance could explain their reluctance to invest in these products, and in particular in Bitcoin ETFs.

On the one hand, ETFs are relatively new products, especially in the cryptocurrency space. On the other hand, older investors are often more conservative and prefer traditional investments such as stocks or bonds that have proven successful over the past few years.

Younger investors are therefore clearly the main users of ETFs, and this is why the authors insist on “the work to be done to educate older investors” about these financial products. With the continued rise of cryptocurrencies, it’s also likely that Bitcoin ETFs and all those coming up will continue to grow in popularity, especially if Wall Street finds a way to sell them to boomers.