Crypto could see $6 trillion from inheritances over 20 years: VanEck's Matthew Sigel

cyptouser3 months agoCryptocurrencies News123
VanEck’s Head of Digital Assets Research Matthew Sigel said more than $6 trillion could flow into crypto from inheritances over the next 20 years.

On July 8, Sigel cited the 2024 Bank of America Private Bank Study, which said that Gen X, millennials, and future generations could inherit $84 trillion from seniors and Baby Boomers through 2045.

For $6 trillion to flow into crypto, young US investors aged 21-43 must inherit $42 trillion from Baby Boomers and continuously allocate 14% of the amount to crypto investment. Young investors must invest $300 billion annually over the next 20 years.

The study said that young self-identified aggressive investors allocated 14% to crypto, while young moderate and conservative investors allocated 12% and 17%, respectively.

Bank of America highlighted the finding, noting that “the most conservative group is holding the highest average exposure to crypto.”

By contrast, investors 44 and up had virtually no crypto allocation in their portfolios.

Crypto seen as growth opportunity

The study also found that 28% of investors aged 21-43 see crypto as having the most opportunities for growth. The finding places crypto investment as young investors’ second highest-rated investment, after real estate, favored by 31% of young investors, and private equity, favored by 26%.

By contrast, 4% of investors aged 44 and up said that crypto has the most growth opportunities, placing it second lowest on their rankings list.

Bank of America said that differences between young and old investors extend “beyond allocations to crypto or private investments” and point to more fundamental changes. It noted that 72% of young investors believe they can no longer obtain higher-than-average returns solely by investing in traditional stocks and bonds. Meanwhile, only 28% of investors aged 44 and up agreed.

Bank of America also speculated that young investors’ interest in crypto could be related to uncertainty. It noted that many crypto industry members compare crypto to investments such as gold and said that crypto may be “strikingly risk-averse for young, wealthy people” from some perspectives.

Mentioned in this article
VanEck
The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

$20M exploit cripples Sonne Finance, hacker in no mood for negotiation

$20M exploit cripples Sonne Finance, hacker in no mood for negotiation

55966e89˃Lending protocol Sonne Finance was forced to pause operations after suffering a hack that d...

Crypto mixing is 'not a crime,' says CryptoQuant CEO

1205f261˃Crypto mixing services are not a crime, wrote Ki Young Ju, the founder and CEO of CryptoQua...

Tether slams Deutsche Bank over suggestion its stablecoin could fail

Tether slams Deutsche Bank over suggestion its stablecoin could fail

55966e89˃Stablecoin giant Tether has slammed Deutsche Bank over a newly released report suggesting t...

Ethereum rally to $3,700? Unlikely, say 2 derivatives metrics

Ethereum rally to $3,700? Unlikely, say 2 derivatives metrics

55966e89˃Ether (ETH) traders experienced a shock when its price approached the $3,500 mark on June 1...

DAO Maker hack victims still await reimbursement 3 years later

DAO Maker hack victims still await reimbursement 3 years later

1205f261˃The DAO Maker crypto fundraising platform, not to be confused with the MakerDAO stablecoin...

BarnBridge DAO reaches $1.7M settlement with SEC over unregistered crypto bonds

BarnBridge DAO, a decentralized finance (DeFi) platform and its founders have agreed to a $1.7 milli...