Control the Bitcoin Market. Generation Z, younger members of Gen X, and millennials have been the primary buyers and sellers of Bitcoin since its start. The rise of exchange-traded funds (ETFs), however, threatens to undermine the younger generation’s influence.
The wealthiest generation in the world, the baby boomers, are getting more involved with ETFs. Among all demographics, they have the most significant wealth, controlling an estimated $68 trillion in the US alone. They have naturally been overexposed to these markets since they control the lion’s share of real estate and stocks. One area where they are underweight is the cryptocurrency market.
The new Bitcoin BTC $69,512 ETFs are available to half of the investing businesses in the US that manage their capital. New dynamics, such as price appreciation, alternative investment strategies, and increased stability, will persist due to the flood of experienced investors.
As of June, over $15 billion had been invested in Bitcoin exchange-traded funds (ETFs), demonstrating confidence in Bitcoin and, maybe, the broader cryptocurrency business. Approval of the ETF has mainstreamed access, even though this is tiny compared to holdings of traditional assets. Large asset managers and banks have products that make it easy for baby boomers to invest on platforms where their wealth is already stored, rather than using exchanges that don’t diversify. This aligns with the recommendations of some experts, who suggest a 1-5% Bitcoin allocation in portfolios.
Bringing new Wealth and Scrutiny
Boomers, according to the research, aren’t going anywhere. I mean, why not? Bitcoin has been the most successful asset over the past decade, yet its supply is finite. Institutional investors distributing on behalf of their customers and retail investors allocating directly have contributed to the increased interest in and price discovery surrounding cryptocurrencies as a valuable diversification tool.
Contrary to common assumptions, Boomers may be more adept at investing in cryptocurrency than millennials. Control the Bitcoin Market: Bybit and Toluna report that compared to younger generations, boomers are 50% more likely to spend “a few days” doing due diligence before investing (34% vs. 12%).
It takes 64 percent of North American investors just over two hours to decide. So, who’s in for meme coins? Boomers, especially retirees, are better equipped to invest patiently and with expertise since they have more time to do extensive research. Conversely, Boomers will outperform millennials and Gen Z investors, who focus on reputational considerations rather than the technical aspects of tokenomics, usefulness, and the competitive landscape.
Also Read: What Does the Future Hold for Bitcoin?
Research Thoroughly Before Investing
Mike Novogratz, CEO of Galaxy Digital, stated in a Bloomberg interview from February that he had long predicted that the market valuation of Bitcoin, which was over $1.3 trillion as of June, will surpass that of gold, which was around $15 trillion, in part because of investments by baby boomers.
“This is probably the first time in the history of Bitcoin that we have a true price discovery,” stated the CEO. Generation Z and millennials are increasingly at ease with digital gold instead of the antiquated and cumbersome form, which happens for every Charlie Munger who has passed away.
Several factors, including direct purchases and the impact of wealth transfer across generations, will drive the next market cycle. Since the principal heirs to these trillions of dollars are tech-savvy, even if they have different expectations, crypto will experience a boom. Control the Bitcoin Market: According to projections, millennials’ wealth will have increased fivefold since the beginning of the decade by 2030.
Baby boomers could prove to be a revolutionary force in the cryptocurrency industry because of their money, delay to the market, and propensity to research thoroughly before investing. Thanks to its more systematic approach to research and investing, the sector is finally getting the stability it needs.
As a result, it’s encouraging to see that investors are shifting their focus from meme coins to stablecoins, where they are less likely to lose money. New altcoin ETFs, the number and scale of asset managers in the field, and the economic transfer of wealth from baby boomers will all contribute to an increase in demand for crypto on an industrial level.
