MARKET

Bitcoin funds rank fourth in the top ten stocks most popular among millennials, surpassing Microsoft and Netflix.

2019/12/10

A recent report shows that millennials aged 25-39 are more inclined to invest in financial products related to Bitcoin rather than equities of major global companies.

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According to a recent report by Charles Schwab, the financial services firm in the United States, millennials are more interested in investing in Grayscale's Bitcoin Trust Fund (GBTC) than in well-known companies like Netflix, Microsoft, and Alibaba.

The report collected data from approximately 142,000 retirement plan participants, with average balances ranging from $5,000 to $10 million, and the data is extracted quarterly.

Among the top ten stocks held by millennials, GBTC ranks fourth at 1.84%, following Amazon at 7.87%, Apple at 6.18%, Tesla at 3.22%, and Facebook at 3.03%. Apple remains the most popular stock across all generations.

Source: Charles Schwab

GBTC is a product launched by Grayscale, a subsidiary of Digital Currency Group, in 2013. Initially offered privately to accredited investors, it received approval for public trading in 2015, allowing investors to invest in Bitcoin without managing private keys.

Although GBTC is popular among millennials, the report shows that it does not make it to the top ten stocks for Generation X (ages 40-54) and Baby Boomers (ages 55-75), highlighting generational differences in investment preferences.

So far, the U.S. Securities and Exchange Commission (SEC) has rejected all applications for listing Bitcoin ETFs, including the latest application from Bitwise. The SEC stated at the time:

The disapproval should not be seen as a judgment on whether Bitcoin or blockchain technology have advantages in terms of "innovation or investment," but rather as concerns about fraud or manipulation in the cryptocurrency space that led to the rejection of Bitcoin ETFs.

Previous studies have indicated that millennials are more inclined to invest in cryptocurrencies. A survey earlier this year by trading platform eToro revealed that over 70% of millennials are interested in investing in cryptocurrencies offered by institutions, while research from the UK law firm Michelmores also showed that 20% of millennials invest in cryptocurrencies like Bitcoin.

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