Almost half of millennial millionaires have at least 25% of their wealth in cryptocurrencies, according to the CNBC Millionaire Survey, as the crypto boom continues to create wealth for young, early adopters.
A whopping 47% of millennial millionaires surveyed have more than 25% of their assets in cryptocurrencies, according to the survey of 750 investors with at least $ 1 million in investable assets. More than a third of millennial millionaires own at least half of their wealth in crypto.
The results highlight a new generation gap in wealth creation through crypto, with younger investors, who recognized the trend early, able to make huge fortunes and increase their existing investments through the rise in the prices of Bitcoin, Ether and other cryptos.
Older millionaires believe in or invest in crypto far less. A whopping 83% of American millionaires have none of their wealth in crypto, according to the survey, and only one in ten holds more than 10% of their wealth in crypto assets. None of the baby boomer millionaires or older generations have more than 10% of their wealth in crypto.
“Younger investors jumped on it early when it was not so well known,” said George Walper, president of Spectrem Group, which conducted the Millionaire Survey online with CNBC in April and May. “The younger investors were more intellectual about the idea, even though it was new. Older investors and the boomers were mainly saying, ‘Is it legitimate?'”
The importance of crypto to young millionaires could transform the wealth management industry as private banks, brokers, and wealth management firms scramble to serve a new, crypto-heavy clientele. In the years to come, the key to attracting the next generation of wealthy customers could be more in cryptocurrency than traditional stocks, bonds, private equity, and hedge funds.
“We’re already seeing the industry respond,” said Walper. “We are seeing more and more providers offering access to crypto investments. It’s changing fast. “
The generation gap among millionaires is even clearer for non-fungible tokens. Most millionaires say they don’t know what an NFT is, and more than a third say they are “an overrated fad”. Still, two-thirds of millennial millionaires say NFTs are “the next big thing”.
Nearly half of Millennial Millionaires surveyed own NFTs, and another 40% say they don’t currently own an NFT but have “considered” them. That compares to 98% of baby boomer millionaires who say they don’t own NFTs and don’t consider it.
“NFTs have only recently been part of media coverage,” said Walper. “So the older generations are further behind in understanding.”