Almost Half Of Millennial Investors Trust Crypto Exchanges More Than US Stock Market – eToro Survey

News | February 20, 2019 By:

Nearly half of millennial online traders have less faith in the US stock market than crypto exchanges, according to a new survey from global investment platform eToro.

The nationwide survey, which includes 1,000 online traders, found that 43 percent of millennial online traders trust crypto exchanges more than the US stock exchanges. 93 percent of millennial crypto traders said that they would invest more money in crypto if it were offered by traditional financial institutions such as TD Ameritrade, Fidelity, or Charles Schwab. 71 percent of millennials that don’t trade crypto also said that they would invest in crypto if offered by a conventional institutions. While younger investors have more trust in crypto exchanges than the stock market, 77 percent of Gen X respondents trust stock exchanges more.

Among investors across all age groups that trade crypto, 92 percent said they would invest more money if a conventional financial institution provided this investing option. Half of online investors surveyed expressed interest in a crypto allocation in their 401k plans. 76 percent would like to gain interest on crypto assets, while 47 percent said would take out a loan in crypto.

“We’re seeing the beginning of a generational shift in trust from traditional stock exchanges to crypto exchanges,” said Guy Hirsch, Managing Director of eToro US. “Younger investors’ experience with the stock market has seen a great deal of loss of trust, with the fall of Lehman Brothers because of irresponsible practices followed by the worst recession since the Great Depression. Trust further eroded when Americans saw how hundreds of billions of dollars of taxpayers money are funneled to the largest financial institutions while their savings evaporated and how banks get free money through quantitative easing while their cost of living continued to rise.”

Hirsch added that blockchain’s immutability is one of the reasons why millennials 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.

“While both crypto enthusiasts and millennials alike seem to distrust monolithic institutions like traditional exchanges and the largest investment banks that play in them, there’s a great deal of demand from younger investors for offerings from firms that are more recognizable, aren’t perceived to be bad actors and have an infrastructure that can provide personalized and tailored advice,” Hirsch said.