One-fifth of young Americans invest in crypto, with Gen Z shunning traditional assets

According to a PolicyGenius survey on April 9, more than one-fifth of young people in the US own crypto, as individuals in the younger generations invest 4x more often in crypto than older generations.

Gen Z, which includes ages 18 to 26, showed the highest preference for crypto over traditional investments — 20% of Gen Z respondents own crypto, while 18% own stocks, 13% own real estate, and 11% own bonds.

Millennials aged 27 to 42 invest in crypto slightly more often than Gen Z respondents, with 22% owning crypto.

However, millennials’ crypto ownership did not exceed traditional investment rates — with 27% invested in stocks and 24% in real estate. Bonds are less popular among the age group, with only 16% invest in bonds.

The survey also found that 9% of Gen Z respondents own NFTs versus 8% of millennials.

The generational divide

Although each generation’s investment rates demonstrate some interest in crypto in an absolute sense, the numbers are highly significant compared to older generations.

PolicyGenius found that the two oldest generations reported significantly lower crypto ownership overall. In the Gen X category, 10% of respondents owned crypto, while 4% owned NFTs.

Meanwhile, only 5% of boomers own crypto, and only 1% own NFTs.

The generational divide is also relevant regarding real estate investment. When Gen Z and millennial investment rates are considered together, 21% of respondents own crypto, while 20% own real estate. But despite the remarkably close rate within the age group, older investors have significantly higher real estate investment rates, with 45% of boomers investing in the category.

Housing shortages and high housing costs may prevent younger individuals from investing in real estate, possibly increasing the appeal of alternative investments like crypto, according to the report.