ccording to the survey, young Americans aged 21 to 42 are 7.5 times more likely to have cryptocurrency in their portfolios than investors over 43.
An alternative investment is typically an asset apart from stocks, bonds, and cash. This investment categorization has grown in popularity recently, as many investors perceive the stock market to be overvalued and risky. At the same time, bank savings pay interest rates significantly below the inflation rate in most Western countries.
"While total usage is low, young folks are 7.5 times more inclined to have crypto in their market portfolio and five times more expected to say they acknowledge it quite well," the bank noted, emphasizing the significance of age in investing.
The bank stated that social media is the most popular place for young investors to find information about investment opportunities. According to the BofA survey, "half of the younger group said they turn to social media for crypto guidance, compared to 30% of the older group."
Meanwhile, 75% of investors aged 21 to 42 believe it is impossible to achieve above-average returns with a traditional portfolio comprised entirely of bonds and stocks, according to the survey.
Instead, the younger generation of investors is looking for ways to increase their returns through alternative investments such as private equity, commodities, real estate, and, as previously mentioned, cryptocurrency.
The findings were published this week in Bank of America's 2022 Private Bank Study of Wealthy Americans. The survey included responses from 1,052 high-net-worth individuals in the United States.
Bank of America has previously expressed corporate interest in cryptocurrency, having participated as a strategic investor in the Series D round of funding for the blockchain infrastructure platform Paxos.
The major bank also made headlines last year when it released its first official piece of equity research on the cryptocurrency market, titled "Digital Assets Primer: Only the First Inning."
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