Investor Interest in Crypto ETFs Surpasses Expectations
Schwab Asset Management released findings on Thursday showing 45% of exchange-traded fund investors plan to purchase crypto ETFs. This figure ties with interest in bond ETFs, according to the brokerage giant's latest survey data.
Bloomberg senior ETF analyst Eric Balchunas called the results surprising, given that crypto represents just 1% of total ETF assets under management while bonds account for 17%. The survey polled 2,000 individual investors aged 25 to 75, with half having traded ETFs in the past two years and holding at least $25,000 in investable assets.
Key Drivers for ETF Adoption
U.S. equities-tracking ETFs led investor preferences at 52%. Low costs drive adoption, with 94% of respondents stating ETFs help reduce portfolio expenses. About half of the participants also view ETFs as gateways to niche strategies and alternative asset classes beyond their core holdings.
Generational Differences in Crypto ETF Interest
Millennials, individuals born between 1981 and 1996, showed 57% interest in crypto ETFs compared to 41% among Gen X investors. Baby boomers demonstrated the lowest appetite at just 15% planning to invest in crypto through ETF vehicles.
Outlook for ETF Products and Emerging Opportunities
Balchunas noted the survey reflected widespread optimism for ETF products generally. Younger generations are particularly positioned to increase their usage of these investment vehicles, he stated.
David Botset, managing director at Schwab Asset Management, emphasized that individual investors now have access to new asset classes and strategies that were previously unavailable. ETFs outnumber individual stocks in the U.S., serving both as low-cost core investments and tools for exploring emerging opportunities.
The data signals that crypto ETFs are gaining traction despite their relatively small market share. Accessibility and cost efficiency remain primary factors drawing investors to exchange-traded products across all categories.