A new survey from the global trading platform eToro showed that 40% of millennials would choose to invest in cryptocurrency assets if a recession hits the US.
eToro, a multi-asset investment system, tapped market research company Provoke Insights to conduct a survey that focused on generational investment. The project ran from July 18 to 31 and had around 1,000 participants that represented Generations X, Z, and millennials. The respondents were all online investors based in the US, with ages ranging from 20 to 65 years.
The survey revealed that more than two-thirds of investors in the United States are wary of a recession, with most preferring to either convert a portion of their stock portfolios or hedge with real estate, commodities, or crypto assets.
40% of Millennials
Survey results showed that 40% of millennials claimed they would prefer to invest in digital assets in the event of a recession hitting the US again. Meanwhile, 50% of Gen Z investors would reportedly choose real estate while 38% of Gen Xers would hedge with commodities,
Guy Hirsch on the Topic
eToro US Managing Director Guy Hirsch said they believe that if a recession happens, stock portfolios would shrink while asset classes like cryptocurrencies would see an upsurge. New models of fractional ownership would appear as well.
He added that these types of investment opportunities have historically been confined to investors with institutional and high net worth, but today’s innovations have opened doors for everyday investors. Hirsch said the result of the survey clearly showed that there’s a demand.
A recession would allegedly boost investors’ interest in new asset classes and fractional ownership. The majority of those really worried about recession said they would own fractions of renowned artworks, famous buildings, private startups, and other kinds of investments.
Meanwhile, 55% of the respondents said they would put up a part of their stock portfolio for sale. The proceeds will then be utilized to finance their investment in fractional ownership of the new asset types.
According to Hirsch, today’s investors demand more freedom that what the present status quo provides. This new mindset will go a long way in engaging young investors.
The results of eToro’s survey reflect what a study was done in India revealed. The Huru India study showed that Indian nationals with a high net-worth are more inclined to invest in Bitcoin (BTC) than other digital currencies.
The survey also showed that cryptocurrencies were the fourth preferred asset in India. However, about half of the respondents were said to be unaware of digital tokens.