Social Trading Platform eToro published the results of a study earlier this week revealing that nearly half of all online millennial traders residing in the United States have more trust in cryptocurrency exchanges than in stock market exchanges.
More specifically, the results of the study showed that “two-thirds of Millennial crypto traders say they have more faith in crypto than the stock market,” and that “even among Millennials that don't trade crypto, one-third said they would trust crypto over the stock market.”
A new study by eToro shows: - 93% of millennials would invest more in crypto if offered by traditional fin. institutions - 74% of crypto traders are interested in crypto option from their 401k provider.
J.P. Morgan recently became the first U.S. bank to create a digital coin. — eToro US (@eToroUS) February 20, 2019
Managing Director of eToro US Guy Hirsch cited the millennial generation’s lack of trust in the government and the traditional financial system as the reason for the attraction to cryptocurrency.
“Younger investors' experience with the stock market has seen a great deal of loss of trust, with the fall of Lehman Brothers because of irresponsible practices followed by the worst recession since the Great Depression,” he explained.
Hirsch also cited the American government’s continual stream of tax breaks for large financial institutions as families’ living costs rise and savings 'evaporate' as a reason for the mistrust.
Millennial Investors Would Like More Crypto Products Offered by Regulated Institutions
On the other hand, the survey revealed some evidence that millennial investors would be more willing to put their savings into crypto if it was more regulated. The survey also found that 93 percent of millennial traders would be interested in investing more money into crypto if it were offered by “traditional financial institutions,” like Charles Schwab or TD Ameritrade.
This figure includes traders who don’t currently have any dealings in crypto--71 percent of millennial investors who don’t already trade crypto said that “they would if offered by a traditional institution.”
A new study by @eToro shows that millennials trust crypto over the stock market.
Even better, they would be willing to go to jail for a week to have the opportunity to buy their dream home. Times are changing. Don’t be left in the dark ??https://t.co/MnPUeq5AlJ — Pomp ? (@APompliano) February 20, 2019
On the same note, the study found that millennial investors are interested in cryptocurrency-based financial products from financial institutions, including crypto-based loans and cryptocurrency 401k contributions.
More Investors Will Continue to Pour Into Crypto Space
Hirsch predicted that the number of young investors who have holdings in cryptocurrency would continue to grow as more of them become educated about cryptocurrency and more investment products are offered. “We're seeing the beginning of a generational shift in trust from traditional stock exchanges to crypto exchanges,” he said.
And indeed, the number of investors of all ages who have put their money into cryptocurrency has continued to grow. A similar study conducted by the Cambridge Center for Alternative Finance in December of last year revealed that in spite of the bear market, the number of verified cryptocurrency users increased two-fold during the first nine months of last year.
