Survey: 40% of Millennials Look to Crypto in the Event of Recession
40% of millennials would prefer to invest in crypto assets in the event of a recession, according to data from eToro, a multi-asset investment platform and social network.
In a press release shared with Cointelegraph on Sept. 10, eToro cited a survey on generational investment conducted from July 18 to July 31 of this year among 1,000 United States online investors. Respondents aged between 20 and 65 years represented Gen Z, millennials, and Gen X.
The survey found that more than two-thirds of U.S.-based investors are afraid of a recession and consider converting part of their stock portfolios to safer investments or hedge with crypto assets, commodities or real estate.
Millennials favor crypto assets
Among survey participants, 40% of millennials said that they would prefer to invest in crypto assets if a recession occurs, while 50% of representatives of Gen Z answered that they would choose real estate. As for Gen X, 38% said that they would hedge with commodities. Guy Hirsch, managing director of eToro U.S., said:
“We believe that if a recession were to occur, we’d see shrinking stock portfolios and growth in other asset classes like crypto, as well as new fractional ownership models. Historically, these investment opportunities have been limited to high net worth and institutional investors, but innovation is unlocking these opportunities for everyday investors and clearly, these results indicate that the demand is there.”
Fractional ownership carves its way
A recession would purportedly cause investors’ interest in fractional ownership and new asset classes, wherein 92% of those most concerned about a recession said they would own fractions of famous artworks, landmark buildings and private startups, among other types of investments. Of all respondents, 55% said that they would sell a portion of their stock portfolio to fund their investment in fractional ownership of these new types of assets.
Per Hirsch, investors want more freedom than the current financial status quo allows, which would help to engage younger investors.
A recent survey by Huru India showed that high net-worth individuals in India are more likely to invest in Bitcoin (BTC) than other cryptocurrencies. Digital currencies were the fourth most preferred asset overall, although almost half of the respondents didn’t know what cryptocurrencies are.