Crypto is becoming more and more integrated into everyday investing, and many young investors now view it as a natural part of a well-constructed portfolio. This change is changing the way clients judge their advisors. Those who adapt early can strengthen relationships and attract new customers, while those who ignore the trend risk seeing their customers leave. A study by Zerohash found that one in three young investors have already left an advisor who offered no path into digital assets.
In Brief
- Among high-income investors aged 18-40, 26% moved between $500,000 and $1 million while 34% moved between $250,000 and $500,000 away from non-crypto advisors.
- Most crypto investors choose to hold their assets independently, with only 24% keeping them with an advisor.
- Confidence in crypto is increasing as 82% of respondents feel reassured by the involvement of large institutions.
Advisors are losing young clients to crypto
The survey, commissioned by research firm Centiment and conducted by Zerohash, shows a major reallocation of digital assets among investors aged 18 to 40. The results reveal that 26% of respondents moved between $500,000 and $1 million away from advisors avoiding crypto, while 34% moved between $250,000 and $500,000 for the same reason.
These changes reflect the profile of the 500 American participants surveyed, all earning more than $100,000 per year, some approaching a million, and 75% of whom already rely on a professional to guide their investment planning.
How these investors reallocate their assets reflects a broader shift in wealth management. Young investors are placing digital assets at the center of their portfolios, although many advisors have yet to keep up with this development. The investigation highlights this trendrevealing key patterns in direct crypto ownership management:
- 76% of crypto investors choose to hold their assets independently, with only 24% keeping them with an advisor;
- Furthermore, 43% devote 5% to 10% of their portfolios to digital assets, showing stable engagement;
- Others go further, with 27% allocating 11% to 20% and 11% placing more than 20% in crypto, reflecting a stronger commitment.
Institutional movements boost confidence in crypto
A key driver behind this growing confidence comes from the involvement of major financial players. Zerohash's research indicates that 82% of investors surveyed feel more assured about their crypto exposure because large institutions such as BlackRock, Fidelity, Robinhood and Morgan Stanley have entered the market. Their participation is seen as a sign that the industry is maturing.
The survey indicates that this feeling influences future decisions. Zerohash reports that 84% of young investors plan to increase their exposure to crypto in the coming year. Among this group, 46% intend to increase their allocations much more significantly.
Portfolio allocations reflect this shift, with around 71% of investors now devoting between 5% and 20% of their total holdings to digital assets, placing crypto alongside traditional investments like stocks, bonds and real estate.
The desire for something other than bitcoin and Ethereum
While Bitcoin and Ethereum still dominate the field, investors aged 18 to 40 are looking beyond the main duo. According to the results, 92% believe that access to a wider range of digital assets is important, and one in five are already leaning heavily towards alternatives like Solana, Dogecoin and USD Coin (USDC).
However, this enthusiasm does not mean that investors are turning a blind eye to the challenges. The rapid expansion of crypto has also widened the playing field for bad actors. The survey highlights that nearly 70% of respondents remain concerned about threats such as money laundering and cybersecurity breaches. These concerns highlight that, despite the excitement, caution remains part of the mindset of young investors.
The survey highlights several factors that help investors feel safe. Regulated custody reassures 54% of respondents, independent audits support trust for 56%, and transparency of reporting counts for 54%. These safeguards help investors judge whether an advisor or platform is credible.
Zerohash notes that strict adherence to the rules remains a key factor when young investors evaluate the professionals who manage their wealth. In other words, the quality of an advisor's crypto-related safeguards now influences credibility as much as investment performance.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
