The market cap of the crypto segment is approximately $2.54 trillion. Baby boomers have emerged as one of the market’s key contributors, or they are believed to be holding a key to the growth of the cryptocurrency market. This is based on the fact that they serve $68 trillion in assets in the US alone.
The crypto sphere has been dominated by millennials, GenX, and GenZ. Baby boomers are now gaining pace. This is happening at a time when the Bitcoin ETF has fetched $15 billion in value until June 2024. ETFs have driven the market since their approval, enabling many traders and investors to diversify their portfolios without gaining direct exposure to Bitcoin ($BTC).
Baby boomers have the largest holdings of any single demographic. Ideally, we prioritize equities and real estate, but the growing momentum of the crypto industry is beneficial, particularly as it undervalues them.
As new investors dig into the crypto market, digital assets will experience different investment approaches, price appreciation, and greater stability. Investors are pitching to have a share in crypto within the range of 1-5%, depending on one’s risk appetite and willingness to explore diversification opportunities.
That said, baby boomers could be looking to diversify their holdings via a different route altogether.
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Banks and asset management could emerge as top destinations for baby boomers. Exchange platforms do not inherently enhance diversification; however, banks and asset managers do permit it.
Moving into the crypto market at any time would require research and risk assessment. The likes of BTC and ETH are attracting more attention because they see a rise in their values, greater adoption, and a better future. Bitcoin has its own ETF product in the United States, while Ether anticipates having one as soon as possible. The SEC has approved a part of their application, and only registration forms are pending.
An approval for Spot Ether ETF could bring more capital from institutional and retail investors.
Boomers entering the market is a positive sign. Compared to their younger counterparts, boomers are known for their cautious approach. Almost 34% of boomers spend a few days doing their research and due diligence before investing. Also, boomers who have retired have more time to review the market and consider multiple technical factors like tokenomics, the competitive landscape, and utility.
Boomers hold a significant advantage because they possess sufficient capital to invest. The crypto sphere needs that instead of the kind of capital that finds its way into the market without any commitment to a long-term holding, or a holding that has been studied thoroughly.
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Their diversification could significantly increase the value of meme coins. Meme coins are largely driven by trends on social media, and boomers may not necessarily be influenced by that. Theories like these have only made having more crypto ETFs in the market imperative.
