Nearly half of millennial traders have more trust in digital currency exchanges than in United States (U.S.) stock market exchanges. Data regarding millennial investment attitudes was collected in a new study from investment platform eToro and published on Feb. 19.
Per the report, 43 percent of the surveyed millenial online traders demonstrate less trust in the traditional stock market, while having more faith in cryptocurrency exchanges. 93 percent of millennial cryptocurrency traders reportedly said that they would invest more in digital currency if traditional financial institutions proposed such an option. At the same time, 71 percent of millennials that do not trade cryptocurrency said that they would begin if it were offered by conventional institutions.
Managing Director of eToro U.S., Guy Hirsch, said that the market is now witnessing a generation shift in trust from traditional stock exchanges to digital currency ones.
“Immutability is native to blockchains and that makes real-time audit to be sensible and cost-effective and that is why millennials and Gen X perceive crypto exchanges as less likely to be subject to manipulation and less likely to be a place where bad actors get rewarded with taxpayer money,” Hirsch explained.
45 percent of the respondents expressed interest in allocating cryptocurrency in their 401(k) retirement savings plans, and 74 percent of digital currency traders would like to receive that option from their 401(k) plan providers.
The research was conducted by market research and strategy firm Provoke Insights on behalf of eToro in September 2018. Throughout the course of the study, the company surveyed 1,000 online investors from ages 20 to 65. The company notes that the margin of error is around 3 percent.
Research published last November revealed that cryptocurrency investing is most popular among millennials earning from $75,000 to $99,999 annually. The survey collected responses from over 1,000 Americans between ages 18 and 80. Almost 40 percent of respondents cited peer influence as a main reason for investing in crypto, and over 35 percent have reportedly been lured into the crypto market by the “Fear of Missing Out.”