A series of recent polls point to renewed interest in cryptoassets from American investors of all generational and ethnic backgrounds, but obstacles such as financial literacy gaps and inaction in relationships with financial advisors continue to hinder accelerated adoption of crypto by retail investors.
A survey of 4,000 American adults conducted between January 27 and February 7, 2022 by Investopedia showed that 49% of respondents said they had only a basic understanding of cryptoassets.
This knowledge is unevenly distributed across generations, with 38% of millennials admitting to owning crypto and 6% of baby boomers claiming to own crypto.
Millennials are also the most confident in their tech savvy, with 41% saying they have an advanced understanding of crypto, according to the survey.
With that in mind, some 28% of millennials say they intend to use crypto to support themselves in retirement, compared to 20% and 17% of Gen X and Gen Z respondents, respectively. At the same time, crypto is part of the retirement plan of only 5% of baby boomers.
A January 2022 survey of 669 U.S. financial advisors interviewed by a financial data and analytics provider Greenwich Coalition sheds light on the reasons behind some US individual investors’ hesitation towards crypto.
The survey indicated that two-thirds of financial advisors in the United States had discussed crypto and/or digital assets with their clients in the past year. However, for the vast majority of councilors, these talks did not lead to action.
As a result, only 15% of financial advisors have either developed an investment strategy or offered an investment product involving crypto-assets to a client, according to the survey.
On a more positive note, a recent survey conducted by Ariel Investments and Charles Schwab Corp. shows that young black Americans are increasingly adopting crypto as an investment strategy. About 38% of black investors under 40 own crypto, compared to 29% of their white counterparts, as reported by Bloomberg.
In total, twice as many black respondents ranked crypto as the best investment choice compared to their white counterparts.
– Around 50% of crypto owners surveyed made their first purchase in 2021 – Gemini
– The more UK and US crypto traders know, the more risk they take – Survey
– 45% of US financial advisors surveyed expect to use crypto on client demand
– More Investors Are Getting Into Crypto But Retaining Multiple Financial Service Providers – Survey
– Clients are increasingly pushing advisors to invest in crypto
– During April’s BTC spike, 61% of financial institutions surveyed said access to crypto was “extremely” important
– Half of millennial millionaires surveyed are set to buy even more Bitcoin and Ethereum in 2022