A majority of millennial millionaires not only own crypto, but hold the bulk of their investment wealth in the assets, according to the new CNBC Millionaire Survey. The results show a shifting economic paradigm as younger investors view cryptocurrency more favorably.

                By                    Yaёl Bizouati-Kennedy

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The survey, which polls investors with investible assets of $1 million or more, found that 83% of millennial millionaires own crypto. In addition, 53% have at least 50% of their wealth in crypto and nearly a third have at least three-quarters of their wealth in Bitcoin, Ether and other cryptocurrencies, according to the survey.

“The future belongs to the next generation. Their voices are becoming louder and their net worth larger, so those looking to interact with them need to know how to engage,” Le Merle said. “You only have to look around the world to see that the most affluent, dynamic and attractive economies are innovation based. Any leading wealth manager has no choice but to embrace innovation in all its forms.”

A Generational Divide on Cryptocurrency Investment

The survey details a generational divide, as crypto holdings of millennial millionaires stand in stark contrast to the investment portfolios belonging to older generations of millionaires: only 4% of baby boomers hold cryptocurrency, and less than a quarter of Gen X investors own any crypto, according to the survey. Indeed, the survey notes that older generations of millionaires are still largely skeptical of crypto and its future, while cryptocurrencies have become the primary source of wealth creation and asset growth for many younger investors — investors who got in early and have seen rapid returns.

Another key finding of the survey is that 48% of millennial millionaires plan to add to their crypto holdings over the next year, while another 39% plan to maintain their current crypto levels. Only 6% of millennial millionaires plan to reduce their crypto investments over the next year, according to the survey.

“Interest from your bank is next to nothing, and many traditional growth stocks, such as tech, appear to have peaked or are coming close to peaking. With that in mind, it’s no wonder that younger generations such as millennials are searching for the highest yields possible, which leads them to the rapidly growing crypto industry,” Molidor said.

This sentiment is echoed by many in the crypto business.

Learn: Bitcoin-Backed Mortgage Product To Launch in 2022 Thanks to $70 Million Funding Round Explore: Bitcoin’s Highs and Lows — And More From Cryptocurrency’s Wild 2021

Millennials Wary of Traditional Banking

Experts point to additional reasons as to why money made by millennial millionaire investors is tied to crypto, including the lack of trust in the traditional banking system. Many millennials entered the workforce during the Great Recession and “know firsthand what bad actors in the banking sector and elsewhere are capable of doing,” per Molidor.

“With the lack of trust in traditional investing institutions, crypto provides an alternative. Because most cryptos are governed in a decentralized fashion — that is, by communities who oversee rules set in code — it’s seen as more honest by young people,” he said.

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