Matthew Sigel, VanEck’s head of digital assets research, said more than $6 trillion could flow from inheritances into crypto over the next 20 years.
On 8 JulySigel cited the 2024 Bank of America Private Bank Study, which stated that Generation X, Millennials and future generations could inherit $84 trillion from seniors and baby boomers through 2045.
To get $6 trillion flowing into crypto, young US investors between the ages of 21 and 43 need to inherit $42 trillion from baby boomers and continually allocate 14% of the amount to crypto investments. Young investors must invest $300 billion annually over the next twenty years.
The research shows that young, self-described aggressive investors allocate 14% to crypto, while young moderate and conservative investors allocate 12% and 17% respectively.
Bank of America highlighted the finding, noting that “the most conservative group has the highest average exposure to crypto.”
In contrast, investors aged 44 and older had virtually no crypto allocation in their portfolios.
Crypto seen as a growth opportunity
The research also showed that 28% of investors between the ages of 21 and 43 believe crypto offers the most growth opportunities. The finding places crypto investments as the second highest-rated investment by young investors, behind real estate, favored by 31% of young investors, and private equity, favored by 26%.
In contrast, 4% of investors aged 44 and over said crypto has the most growth potential, putting it in second place on their rankings.
Bank of America said the differences between young and old investors “go 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 earn higher-than-average returns by investing solely in traditional stocks and bonds. Meanwhile, only 28% of investors aged 44 and over agreed.
Bank of America also speculated that young investors’ interest in crypto could be linked to uncertainty. It noted that many members of the crypto industry compare crypto to investments like gold and said that from some perspectives, crypto can be “strikingly risk-averse for young, wealthy people.”