According to Fortune, a new report from Coinbase reveals a dramatic generational split in investing. The survey of 4,350 U.S. adults with investment accounts found that Gen Z and Millennial investors hold 25% of their portfolios in non-traditional assets like crypto, derivatives, and NFTs. That’s three times more than the 8% held by Gen X and Baby Boomers. Coinbase VP Gareth Kay called the disparity “staggering,” noting 73% of younger investors feel it’s harder for them to build wealth traditionally. The report also highlights that these younger investors get their advice from friends, family, and YouTube, not financial planners. This comes as crypto becomes more mainstream, with new ETFs launching and even Vanguard listing them in early December.
The Trust Gap Is Real
Here’s the thing: this isn’t just about risk appetite. It’s about a fundamental loss of faith. When three-quarters of a generation feels the conventional playbook is rigged against them, they’re going to look for a new game. And technology gives them the tools to do it. Crypto, for all its volatility, represents a system they feel they can access and understand on their own terms, outside of old gatekeepers. The fact that their preferred advice sources are YouTube and peers, not a certified planner, tells you everything. They’re building a parallel financial culture. Is it riskier? Probably. But from their perspective, what’s the alternative? Sticking with a system that they believe has already failed them?
A Mainstream Moment, But For Whom?
Now, the timing of this report is fascinating. Crypto is having a weird institutional moment. We’ve got Solana ETFs having a record launch. We’ve got Vanguard, the bastion of traditional “slow and steady” investing, begrudgingly listing crypto ETFs. It’s becoming normalized in the plumbing of finance. But that normalization might be for the benefit of older, institutional money dipping a toe in. For younger investors, the appeal was never about fitting into the old system. It was about building a new one. So the question becomes: as crypto gets wrapped into ETFs and offered by your 401(k) provider, does it lose its counter-cultural, “alternative pathway” appeal? Or does that just validate the younger generation’s bet?
Coinbase’s Obvious Play
Let’s be real, this report is also a giant piece of market research for Coinbase itself. Gareth Kay basically admits it: this data helps them build “a more modern investing experience” for this new generation. They’re seeing their core user base and they’re doubling down. It’s smart. They’re positioning themselves not just as an exchange, but as the gateway for a generation that wants a different relationship with money and assets. The entire report frames crypto as the logical tool for this disaffected group. It’s a savvy narrative, whether you buy into crypto or not. It shows they understand the motivation isn’t just greed; it’s a sense of economic exclusion. And they’re selling the shovel to the people digging for a way out.
