Boomers also hold the key to wealth in cryptocurrency.

Since the creation of cryptocurrencies, the cryptocurrency market has been primarily driven by millennials, along with younger members of GenX and, more recently, members of Generation Z. However, their dominance has increased with the introduction of exchange-traded funds (ETFs). The younger generation is being eroded.

ETFs are attracting greater participation from baby boomers, the world’s wealthiest demographic. They manage approximately $68 trillion in assets in the United States alone. This is the highest wealth of any single demographic. As investors, they have generally been overexposed to stocks and real estate, in which they own the largest holdings. The cryptocurrency industry is a small industry.

In the US, half of the investment firms that manage assets have access to a new Bitcoin (BTC) ETF. The influx of experienced investors will continue to bring new dynamics, including higher prices, different investment approaches and greater stability.

Related: Rushing OP_CAT in Bitcoin can result in huge security costs.

Bitcoin ETFs have attracted more than $15 billion in investments as of June, reflecting belief in Bitcoin and the larger cryptocurrency industry. Although this is small compared to traditional asset holdings, the approval of ETFs has mainstreamed access. And just as some experts recommend a 1% to 5% Bitcoin allocation to your portfolio, the products offered by large asset managers and banks allow boomers to bypass the need for undiversified exchanges and allow their wealth to be invested in what is already held. We ensure that you can easily invest in our platform.

Bring new wealth and research

Research shows boomers are here to stay. And why not? Bitcoin has a fixed supply and has been the best-performing asset over the past decade. Cryptocurrencies have become a valuable vehicle for diversification, leading to greater interest and price discovery through both institutional investors acting on behalf of their clients and retail investors making direct allocations.

Contrary to popular belief, Boomers may be better cryptocurrency investors than younger generations. A study by Bybit and Toluna found that 34% of boomers spend “several days” on due diligence before investing. This is 50% more than the younger generation.

Related: With the approval of the Ether ETF, the SEC shows that staking can still be a security tool.

In North America, 64% of investors spend less than two hours on pre-investment research. (Meme coins, anyone?) Boomers, especially those who are retired, spend more time doing thorough research, making them more knowledgeable and patient investors. Instead, Boomers paying greater attention to technical factors such as tokenomics, utility and competitive environment will often lead to better investment results than younger investors who prioritize reputational factors.

In a February interview with Bloomberg, Galaxy Digital CEO Mike Novogratz said that Bitcoin’s market capitalization (about $1.3 trillion as of June) was about twice that of gold, thanks in part to investment by boomers. It repeated long-standing predictions that it would exceed $15 trillion.

“This may be the first true price discovery in Bitcoin history,” Novogratz said. “For every Charlie Munger who has passed away (God rest his soul), the money is going to Gen Z and Millennials, who are much more comfortable with digital gold than with old, clunky gold.”

In addition to direct purchases, the effect of intergenerational wealth transfers is another factor likely to drive the next market cycle. With trillions of dollars set to be inherited, cryptocurrencies will rise as the primary beneficiaries of this wealth are digitally literate, even if expectations differ. It is estimated that by 2030, millennials will have five times more wealth than they did in early 2010.

Boomers are likely to change the cryptocurrency landscape due to the wealth they possess. the fact that it was late to market; And because it takes more time to get information before investing. A more rigorous research and investment style provides much-needed stability to the industry.

After all, it’s hard to see the same investor risking his capital on meme coins and instead focusing on stablecoins. This is a positive step. At an industry level, the development of new altcoin ETFs, asset managers operating in their space and scale, and economic wealth transfer from boomers will drive demand for cryptocurrencies.

This article is written for general information purposes and should not be considered legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.