Charles Schwab: Millennials are more interesting in Bitcoin than Disney, Netflix, and Microsoft
A new study from Charles Schwab said that millennials prefer Bitcoin to Disney, Netflix, and Microsoft, but less than Facebook, Apple, and others.
On Dec 4, Charles Schwab, one of the largest retail brokerage firms in the US, reported that the Grayscale Bitcoin Trust – trades under the ticker GBTC on over-the-counter markets is one of the most popular equity holdings amongst millennials. This statistical comes against the headwind of the 50% downturn that the BTC price has seen over the past five months.
Bitcoin more common than Disney, Netflix, and Microsoft
According to that, millennials who are aged 23-39 were buying into the GBTC (1.84%) than in Berkshire Hathaway (1.73%), Walt Disney Co. (1.68%), Netflix Inc. (1.58%), Microsoft Corporation (1.53%), or Alibaba Holding Group (1.39%).
This made GBTC become the fifth most common investment among millennials, however, falling short of Facebook’s 3.03%, Tesla’s 3.22%, Apple’s 6.18%, and Amazon’s 7.87%.
Source: Charles Schwab
It is sure that 1.84% isn’t “mass adoption” per se, though many in the cryptocurrency area have this statistic in stride. CEO of industry outlet The Block – Mike Dudas said that the statistic is “the clearest sign to me that there is retail demand for people to own BTC via traditional investment accounts.”
The report is published by Schwab every quarter and data is collected from nearly 142,000 retirement plan participants who currently have balances between $5,000 and $10 million in their Schwab Personal Choice Retirement Account.
Besides, early-2019, Blockchain Capital, the industry venture fund, published a survey that revealed there is an overwhelming level of interest for Bitcoin amongst the millennial population in the United States. It had 2,029 American adults to take part in responding to, in which 59% of those aged 18-34 “strongly” or “somewhat” agree that “BTC is a positive innovation in financial technology,” while 42% of the same demographic indicated that they intend to purchase BTC within the next five years.
Moreover, partner of Bitcoin fund Adaptive Capital, Willy Woo recent shared a chart that showed while millennials make up a rapidly increasing portion of the adult population, they own effectively none of the U.S wealth. In fact, at just over 25% of the American population, millennials own 3% of the U.S wealth.
On the other hand, Marty Bent, a popular Bitcoin podcaster responded to Charles Schwab’s statistic that “we’re mad as hell and we’re going to do something about it,” referencing the idea that millennials will take over the largely baby boomer-run fiat system with crypto.
We’re mad as hell and we’re going to do something about it. https://t.co/xTWv5OCxtH
— Marty Bent (@MartyBent) December 5, 2019
Grayscale Bitcoin Trust (GBTC)
Grayscale owned by Digital Currency Group that issued GBTC in 2013 as a private placement to accredited investors; in 2015, it received approval from the Financial Industry Regulatory Authority (FINRA) to offer publicly-traded shares.
GBTC is known as the most successful crypto investment product, which saw a total cumulative inflow of $304.4 million for the 12 months ending in Sep. Further, in 2017, Grayscale once also filed for a BTC exchange-traded product (ETF), but later that year withdrew its application as the U.S. Securities and Exchange Commission (SEC) rejected the Winklevoss Brothers’ bitcoin ETF. Until now, the SEC has not approved any Bitcoin ETF proposal because of market manipulation and fraudulent activity.
Gen X and baby boomers
Remarkably, GBTC is not in the top 10 equity holdings by Gen X (aged 40-54 years) and baby boomers (55-75 years). Also, according to Schwab’s report, the generations’ top three equity holdings are Apple, Amazon and Berkshire Hathaway stocks.
As revealed, the average account balance for all joiners in the Q3 of 2019 was $276,929, nearly identical to the $276,547 from the previous quarter and 1% above the average balance from the Q3 2018 ($275,362). Besides, baby boomers had the highest account balances at an average of $394,064, followed by Gen X at $213,018, and millennials at $68,756.
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