The future is now, old man.
According to a recent report by Charles Schwab that cites data from self-directed brokerage accounts (SDBAs), millennial investors prefer to add exposure to Bitcoin (BTC) over a number of leading traditional tech stocks, including Netflix (NFLX), Microsoft (MSFT), and Alibaba (BABA).
SDBAs are brokerage accounts inside retirement plans that allow users to invest in securities that aren’t part of their core retirement plan offerings, meaning the available options include equities, ETFs, mutual funds and the like, but not cryptocurrencies. Hence, the Bitcoin discussed in the report is not actually Bitcoin but the Grayscale Bitcoin Trust (GBTC), an investment vehicle that enables investors to gain exposure to the price of Bitcoin on the OTC markets.
GBTC is often derided for its relative detachment from the spot price of Bitcoin. However, the report suggests younger investors are willing to ignore this issue to gain exposure to the best performing asset of the last decade.
As one would expect, the older generations (Gen X and Baby Boomers) prefer blue chips stocks like Apple (AAPL), Amazon (AMZN) and Berkshire Hathaway (BRK.B). GBTC didn’t make the top-10 list for either generation’s equity holdings.
More: Schwab Report: Self-Directed 401(k) Balances Hold Steady; Millennials Allocate More to ETFs and Cash Than Gen X, Boomers
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.